£199.99 £139.99 for one year of Unlimited learning. Offer ends on 14 November 2022 at 23:59 (UTC). T&Cs apply

Find out more
Monopoly
Skip main navigation

Monopoly

A monopoly is a market structure in which there is only one producer or seller of a product.

A monopoly is a market structure in which there is only one producer or seller of a product. In other words, the single business is the industry. Entry into such a market is restricted due to high costs or other impediments, which may be economic, social, or political.

For instance, a government can create a monopoly over an industry that it wants to control such as electricity. Another reason for the barriers against entry into a monopolistic industry is that oftentimes one entity has the exclusive rights to a natural resource. Monopolies can be established by a government formed naturally or formed by integration. For example, in Saudi Arabia, the government has sole control over the oil industry.

This article is from the free online

Fundamentals of Economics

Created by
FutureLearn - Learning For Life

Our purpose is to transform access to education.

We offer a diverse selection of courses from leading universities and cultural institutions from around the world. These are delivered one step at a time, and are accessible on mobile, tablet and desktop, so you can fit learning around your life.

We believe learning should be an enjoyable, social experience, so our courses offer the opportunity to discuss what you’re learning with others as you go, helping you make fresh discoveries and form new ideas.
You can unlock new opportunities with unlimited access to hundreds of online short courses for a year by subscribing to our Unlimited package. Build your knowledge with top universities and organisations.

Learn more about how FutureLearn is transforming access to education