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

Real-world.

  • 1 Standard Oil controlling about 90% of U.S. oil refining before being broken up in 1911
  • 2 Local utility companies often operate as regulated monopolies for electricity or water
  • 3 De Beers historically controlling the global diamond market
Studied in

1 unit use this concept.