Describe the concept of a monopoly.

Describe the concept of a monopoly.

A monopoly refers to a market structure where there is only one seller or producer of a particular good or service, with no close substitutes available. This gives the monopolistic firm significant control over the market, allowing it to set prices and output levels to maximize its own profits. Monopolies often arise due to barriers to entry, such as exclusive ownership of resources, patents, or government regulations. As a result, monopolies can restrict competition, potentially leading to higher prices, reduced consumer choice, and lower overall market efficiency.