These economies see this market situation as a factor that leads to price gouging and deteriorating quality as a result of a lack of alternative choices for consumers. In free-market economies, monopolies are usually discouraged. That is, a single company dominates the industry. In other words, the term refers to a dominant position of an industry, that is a sector that is controlled by a single entity to a point of eliminating or excluding every other viable competitor. Monopoly in economicsДЄ monopoly is a market structure in which an individual or a group of individuals acting as a unit have control over the total output or the supply of goods and services without any close substitute. In other words, when a company dominates a business sector or an industry, it can use that monopoly power to its own advantage at the expense of its consumers. Also, a company can gain or maintain a monopoly power or position through unfair practices that suppress competition thereby denying consumers of their choice. A monopoly can as well develop naturally. On the other hand, the government can enforce and encourage monopolies of certain essential services such as utilities for certain reasons. In other words, no competitor can break into the market because of the fact that a single company is in control of the industry.ДЄlso, they can concentrate wealth, power, and influence in the hands of a single or few individuals. That is a single entity is in charge of the industry with the absence of any form of rivalry. Monopoly in its real context refers to a dominant position of an industry, that is a sector that is controlled by a single entity to a point of eliminating or excluding every other viable competitor. Here, the cross elasticity of demand with regard to every other product is very low. This implies the existence of only one seller of a commodity with barriers to entry of others. In this situation, only one firm or a group of firms that are combined has control over the supply of the product. Joining the two words means the single seller. Mono stands for single while Poly stands for the seller.

The word monopoly is derived from two words, Mono and Poly.

What are the characteristics of monopoly? What is a monopoly? Monopoly meaning.

What is the definition of monopoly in economics?.

Consumer exploitation and price discrimination.

Higher prices than in competitive markets.

Geographical location and transportation costs.

Monopoly examples