A monopoly refers to a situation where a given sector or industry is dominated by one firm, entity or corporation which has become large enough to own all or nearly all of the market for a particular type of product or service

Monopoly refers to a market structure in which there is only one seller or producer in the market. This means that there is no competition for the seller, and they have complete control over the supply of the product or service. Monopolies are characterized by the absence of substitutes and barriers to entry for potential competitors.

There are several key characteristics of a monopoly market structure:

1. Single Seller: In a monopoly, there is only one seller who dominates the market. This seller has exclusive control over the production and distribution of the product. They can set the price and quantity of the product according to their own preferences.

2. No Substitutes: Monopolies arise when there are no close substitutes available for the product or service. Consumers have no alternative options and must purchase from the monopoly seller at the given price.

3. Barriers to Entry: Monopolies often have significant barriers to entry that prevent other firms from entering the market and competing. These barriers can include legal restrictions, patents, high start-up costs, control over essential resources, or economies of scale that make it difficult for new firms to compete.

4. Market Power: Monopolies have significant market power, allowing them to influence prices and control the market. They can charge higher prices and earn higher profits due to the lack of competition.

5. Price Maker: Since there are no other sellers in the market, the monopoly becomes a price maker. They have the ability to set the price of the product based on their own cost structure, demand conditions, and desired profit level.

Monopolies have both advantages and disadvantages. On one hand, they can achieve economies of scale, invest in research and development, and provide consistent quality products or services. On the other hand, monopolies can exploit consumers by charging high prices, reducing choice, and limiting innovation.

In conclusion, a monopoly refers to a market structure with a single seller who has exclusive control over the supply of a product or service. This lack of competition gives the monopoly significant market power and the ability to set prices. Monopolies can have both positive and negative impacts on the economy and consumers.