Monopoly Power

Monopoly power refers to the ability of a single company or entity to control a market or industry, allowing it to dictate prices and limit choices for consumers. This occurs when a company is the sole provider of a product or service, reducing competition. As a result, monopolies can charge higher prices and may have less incentive to improve quality or innovate. Governments often regulate monopolies to promote fair competition and protect consumers, ensuring that markets remain healthy and diverse.