What Is a 'Monopoly'?

A monopoly occurs when a company and its offerings dominate an industry. Although many monopolies are illegal, some are government sanctioned. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

| Term of the Day Monopoly A monopoly refers to when a company and its product offerings dominate a sector or industry. Monopolies can be considered an extreme result of free-market capitalism in that absent any restriction or restraints, a single company or group becomes large enough to own all or nearly all of the market (goods, supplies, commodities, infrastructure, and assets) for a particular type of product or service. The term monopoly is often used to describe an entity that has total or near-total control of a market. Read More » Related to "Monopoly" How and Why Companies Become Monopolies Without competition, monopolies can raise prices and lower quality, leaving consumers little choice. But monopolies can benefit consumers as well. Read More » A History Of U.S. Monopolies These monoliths helped develop the economy and infrastructure at the expense of competition. Read More » Understanding Antitrust Laws Learn about antitrust or competition laws. These statutes protect consumers from predatory business practices by ensuring fair competition exists. Read More » Related Definitions Monopolistic Competition Monopolistic competition characterizes an industry in which many firms offer products or services that are similar, but not perfect substitutes. Read More » Natural Monopoly A natural monopoly is a monopoly that arises or would rise through natural conditions in a free market. Read More » Duopoly A duopoly is a situation where two companies own all or nearly all of the market for a given product or service; it is the most basic form of an oligopoly. Read More » Oligopoly Oligopoly is a market structure with a small number of firms, none of which can keep the others from having significant influence. Read More » CONNECT WITH INVESTOPEDIA Email sent to: mondemand.forex@blogger.com To update your newsletter preferences or unsubscribe, click here. 114 West 41st St, floor 8 New York NY 10036 © 2019, Investopedia, LLC, All Rights Reserved | Privacy Policy