A monopolist has the power to influence the prices of goods and services. Therefore, he is a

Step 1: Analyze the question The question says a monopolist has the power to influence prices. We need the term that describes a firm with that power.

Step 2: Explain the concept

• A monopolist is the sole seller of a product with no close substitutes, and there are barriers to entry for other firms.
• Because it is the only supplier, it faces the whole market demand curve. By adjusting the quantity it supplies, it can set or influence the price. This makes it a price maker (also called a price setter).
• In contrast, a firm in perfect competition is too small to affect the market price, so it is a price taker.

Step 3: Evaluate the options

• A. Price maker: Correct. It describes a firm that can set or influence the price.
• B. Price taker: This describes firms in perfect competition, which accept the market price. It is the opposite of a monopolist.
• C. Price system: This is the mechanism by which prices allocate resources in a market economy. It does not describe a type of seller.
• D. Price competition: This is rivalry among firms through price cuts. A monopolist has no competitors, so it does not apply.

Step 4: Answer The monopolist is a price maker, which is option A.

Tip: Remember "Monopoly = Maker, Perfect competition = Taker." The more market power a firm has, the more control it has over price. In JAMB Economics, questions on market structures often test this contrast, so be sure you can tell the two apart.