What is Monopoly in Economics

Maybe when you hear the word “Monopoly”, the first thing that will come in to your mind in the board game. Here we define what is monopoly in Economics.

Monopoly is a situation where one company is the sole manufacturer of a certain product, without the product having close substitutes, and it thereby “controls” the market.

The control of the market enables the monopoly to regulate the level of production and the prices in its favor. This situation is the opposite of “perfect competition”.