What term describes the absence of competition in a situation leading to higher prices?

A monopoly is defined as a market structure where a single seller or producer controls the entire supply of a product or service, eliminating competition. This lack of rivals allows the monopolistic entity to set prices without concern for competitive pressures, often resulting in higher prices for consumers. In a monopolistic scenario, since there are no competitors, the monopolist can maximize profits by charging more than what would be possible in a competitive market, where prices tend to be driven down by the presence of multiple sellers.

The other terms do not accurately reflect the absence of competition leading to higher prices. Competition indicates the presence of numerous sellers striving for consumer business, which generally keeps prices low. Market dominance might imply a company has a significant share of the market but doesn’t necessarily mean there is no competition. Monopolistic competition involves many sellers which still allows for some competition, even as products may be differentiated. Thus, the most fitting term to describe a situation of no competition and resultant higher prices is indeed monopoly.