A monopoly is a firm that is the only seller of a good or service that does not have a close substitute.

Question

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A monopoly is a situation where a single firm controls the entire market for a particular product or service, which means that there is no competition from other firms. As a result, the monopolist can dictate prices and output levels, often resulting in higher prices and lower quantities produced than would be the case in a competitive market. This is possible because there are no close substitutes for the monopolist's product, so consumers have little choice but to pay whatever price the monopolist charges.

A Monopoly Is a Firm That Is the Only Seller