Answer:
BLE OF CONTENTS
ECONOMY GOVERNMENT & POLICY
What Is a Monopoly? Types, Regulations, and Impact on Markets
By ADAM HAYES Updated August 02, 2022
Reviewed by CAITLIN CLARKE
Fact checked by SUZANNE KVILHAUG
Monopoly
Investopedia / Jessica Olah
What Is a Monopoly?
A monopoly is a market structure where a single seller or producer assumes a dominant position in an industry or a sector. Monopolies are discouraged in free-market economies as they stifle competition and limit substitutes for consumers.
In the United States, antitrust legislation is in place to restrict monopolies, ensuring that one business cannot control a market and use that control to exploit its customers.
KEY TAKEAWAYS
A monopoly is a market structure that consists of only one seller or producer.
A monopoly limits available substitutes for its product and creates barriers for competitors to enter the marketplace.
Monopolies can lead to unfair consumer practices.
Some monopolies such as those in the utility sector are government regulated.