Monopoly Theory

Monopoly Theory explores markets dominated by a single firm that has exclusive control over a product or service, limiting competition. This firm can influence prices and supply, often leading to higher prices and reduced choices for consumers. The theory examines how monopolies may arise, their impact on economic efficiency, and the role of regulation or intervention to promote fair competition. Essentially, it provides insights into how market power affects resource allocation, pricing, and overall economic welfare when competition is absent or limited.