Non-Competitive Market

A non-competitive market, also known as a monopoly or oligopoly, occurs when one or a few firms dominate the market, limiting competition. In this type of market, these firms have significant control over prices and production, often leading to higher prices and less choice for consumers. Unlike competitive markets, where many businesses vie for customers, non-competitive markets can restrict innovation and efficiency. Examples include utilities like water or electricity, where often only one provider operates. This structure can lead to concerns about fairness and consumer rights, as choices are limited and prices may not reflect true market costs.