Market Monopoly

A market monopoly occurs when a single company or entity has exclusive control over a particular product or service in a market. This dominance means the monopoly can set prices, limit choices for consumers, and inhibit competition. Monopolies often arise due to high barriers to entry, such as significant startup costs or government regulations, which prevent other firms from competing. As a result, monopolies can lead to less innovation and higher prices, impacting consumers and overall market health. Understanding monopolies is essential for recognizing how market power can influence economic efficiency and consumer welfare.