Market Monopolies

A market monopoly occurs when a single company or entity dominates a particular market, meaning it’s the sole provider of a good or service. This control allows the monopolist to influence prices and restrict competition, often leading to higher prices and less choice for consumers. Monopolies can arise from factors like unique products, high barriers to entry for other companies, or government regulations. While they can lead to efficiency in some cases, they can also result in negative impacts on innovation and consumer welfare due to lack of competition.