Monopoly
Definition
A market structure in which a single seller controls the entire supply of a good or service with no close substitutes. Monopolies can charge higher prices because consumers have no alternatives, which is why governments often regulate or break up monopolies.
Examples
- Standard Oil controlling about 90% of U.S. oil refining before being broken up in 1911
- Local utility companies often operate as regulated monopolies for electricity or water
- De Beers historically controlling the global diamond market
Study This Concept
Practice monopoly with free review games in these units: