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Economics: monopoly means a single seller with no close substitutes and the ability to set prices above marginal cost, often creating monopoly profits.
In economics, a monopoly is a market structure in which a single firm is the only supplier (single seller) of a particular good or service. It is typically characterized by the absence of effective economic competition, limited or no viable substitutes, and the ability for the monopolist to set prices above marginal cost—often resulting in monopoly profits. The term “monopolize/monopolise” also refers to the process by which a firm gains the ability to raise prices and/or exclude competitors. In law, “monopoly” is not defined only by being the largest or the only firm; it is tied to having significant market power. Legal discussions focus on the ability to charge excessively high prices and on whether dominant position is associated with unfair or abusive conduct. Holding dominance is often not illegal by itself, but certain categories of behavior by a dominant firm can be treated as abusive under competition (antitrust) law. Monopolies may arise through mergers and integration, naturally (e.g., due to resource constraints or high fixed costs), or through government-granted legal monopolies (such as those associated with patents, copyrights, or state-sanctioned exclusive rights).
Economics: monopoly means a single seller with no close substitutes and the ability to set prices above marginal cost, often creating monopoly profits.
Law: monopoly/dominance is linked to significant market power; dominance alone may be lawful, but abusive conduct (e.g., unfair pricing or exclusionary behavior) can trigger legal sanctions.
Monopolies can form naturally, through business conduct (e.g., mergers/integration), or via government-granted legal monopolies such as intellectual property or state-sanctioned exclusivity.
A market structure in which one firm is the only supplier of a particular good or service, typically with limited competition and no close substitutes.
The ability of a firm to influence market conditions, such as by raising prices above competitive levels.
A legal concept referring to a firm’s significant market power in a relevant market, which may be lawful unless accompanied by abusive conduct.
An exclusive market position sanctioned by the state, often to encourage investment or protect domestic interests, such as through patents or state-owned enterprises.
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