Monopoly

A monopoly is a market structure where a single company or entity dominates the supply of a product or service, making it the sole provider. This lack of competition allows the monopolist to set prices and control the market. Consumers usually have fewer choices, and the company may prioritize profit over quality or customer service. Monopolies can arise from various factors, such as exclusive resources, patents, or government regulations. While they can achieve efficiencies, they may lead to higher prices and reduced innovation, ultimately impacting overall market performance and consumer welfare.