Monopoly
Monopoly is a market structure with one firm (the monopolist) supplying the entire market for a product with no close substitutes. The firm faces the entire downward-sloping market demand curve and has significant power to set price and quantity.
Real World
Before its breakup, Microsoft's near-monopoly on PC operating systems in the 1990s — holding over 90% market share with Windows — led the US Department of Justice to launch antitrust proceedings in 1998, alleging abuse of monopoly power to stifle competition.
Exam Focus
Always distinguish between a legal monopoly (25%+ market share under UK law) and pure monopoly; referencing this threshold signals precise knowledge to examiners.
How well did you know this?