A is a market structure where a single seller dominates the entire industry, providing a unique product or service with no close substitutes. Because there is no competition, the firm acts as a price maker , enjoying significant control over market prices and often earning sustained economic profits. Core Characteristics of a Monopoly
Monopolies typically form when "barriers to entry" protect a firm from competition: Monopoly
: The firm and the industry are one and the same. A is a market structure where a single
: There are no close substitutes available for consumers, leaving them with little choice. : There are no close substitutes available for
: To sell more units, the monopolist must lower its price. Sources of Monopoly Power (Barriers to Entry)
: The firm can influence the market price by adjusting its output levels.