Question

Term: monopoly

Answer 1

In Economics, the term monopoly is used to definition the market structure which has the following characteristics:

There is only a single seller in this market.

who sells a unique product in the market.

The good has no close substitute.

In this market, the seller faces no competition, as he is the sole seller of goods with no close substitute.

In this market, factors like government license, ownership of resources, copyright and patent and high starting cost make an entity a single seller of goods. All these factors restrict the entry of other sellers in the market. Monopolies also possess some information that is not known to other sellers.

the single seller is the market controller as well as the price maker. He enjoys the power of setting the price for his goods.