💡 What is a Monopoly?

A monopoly is when one company controls the whole market. There are no real competitors.

Main Features of a Monopoly:

1. Only one seller – One firm sells the product.

2. No competition – Other firms can't easily enter.

3. Price maker – The firm chooses the price.

4. No close substitutes – No similar products available.

5. Hard to enter – Big barriers like high costs or legal rules.

Advantages of a Monopoly:

• Lower costs – Big companies can produce cheaply (economies of scale).

• Money for research – High profits can be used to invent new things.

• Stable prices – Less price changing.

Disadvantages of a Monopoly:

• Higher prices – No competition means prices might be high.

• Less choice – Only one product or brand.

• Less effort to improve – No reason to get better or cheap.