MONOPOLY: A market structure characterized by a single seller of a unique product with no close substitutes. This is one of four basic market structures. The other three are perfect competition, oligopoly, and monopolistic competition. As the single seller of a unique good with no close substitutes, a monopoly has no competition. The demand for output produced by a monopoly is THE market demand, which gives monopoly extensive market control. The inefficiency that results from market control also makes monopoly a key type of market failure.

 

A basic monopoly graph comparing monoply prices on out put with itscompetition.

 

What's a Monopoly? | Maximizing Profit | Supply & Demand| Public Policy | Characteristics