Economics Supply And Demand Questions
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 high start-up costs, exclusive access to resources, or legal restrictions. They can result in higher prices, reduced consumer choice, and potentially lower levels of innovation and efficiency compared to competitive markets.