💡 What is a Monopoly?
A monopoly is when one company controls the whole market. There are no real competitors.
Main Features of a Monopoly:
Only one seller – One firm sells the product.
No competition – Other firms can't easily enter.
Price maker – The firm chooses the price.
No close substitutes – No similar products available.
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.