Is Tesla a monopoly?

Question:

Is Tesla a monopoly?

Monopoly:

A monopoly is the only seller of a good or service in a market. If there is a market with any competition, it is not a monopoly.

Answer and Explanation:

Tesla is a manufacturer of electric cars. Tesla would be considered a monopoly if there were no other companies that sold electric cars. However, Chevrolet, Audi, Nissan (among others) also produce electric cars. Therefore, even though Tesla is the main maker of these cars, it is not the only one and, thus, is not a monopoly. In reality, Telsa is in an oligopoly, which is a market with only a "few" firms.


Learn more about this topic:

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What is a Monopoly in Economics? - Definition & Impact on Consumers

from Economics 101: Principles of Microeconomics

Chapter 7 / Lesson 2
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