Economics Supply And Demand Questions Medium
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 single firm has complete control over the market and can dictate the price and quantity of the product. In a monopoly, there are significant barriers to entry, preventing other firms from entering the market and competing.
On the other hand, a private monopoly specifically refers to a monopoly that is owned and operated by a private individual or entity. This means that the sole control and ownership of the monopoly lies in the hands of a private company or individual, rather than being owned by the government or a public entity.
The main difference between a monopoly and a private monopoly lies in the ownership and control of the market. While a monopoly can be either privately or publicly owned, a private monopoly specifically refers to a monopoly that is privately owned and operated. In both cases, the monopolistic firm has the ability to set prices and control the market, but the distinction lies in the ownership structure.