monopoly

Monopoly

A situation in which a single company owns all or nearly all of the market for a given type of product or service.

For a strict academic definition, a monopoly is a market containing a single firm.

Notes:

JD Rockefeller Oil was convicted of monopoly.

See also: Antitrust, Duopoly, Monopsony, Oligopoly, Perfect Competition, Price Fixing

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Monopoly

Absolute control of all sales and distribution in a market by one firm, due to some barrier to entry of other firms, allowing the firm to sell at a higher price than the socially optimal price.

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monopoly

A business that is the sole supplier of a particular good or service. Regulated monopolies, such as electric utilities, are generally restricted as to the returns they are permitted to earn. Other monopolies such as firms with unique products or services derived from patents, copyrights, or geographic location may be able to earn very high returns. Compare oligopoly.

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monopoly

Of, relating to, or being a market in which there is a single seller of a particular good or service. For example, electric utilities nearly always operate in monopoly markets. Compare monopsony.