What is a monopoly?

A monopoly is defined as a market structure where a single seller controls the entire market for a particular product or service. This means that this single seller has significant market power, allowing them to influence prices and supply without any direct competition. In a monopoly, consumers have limited alternatives because there are no other sellers offering the same product or service, often leading to higher prices and reduced choices for the consumer.

This unique position is typically the result of various factors, such as high barriers to entry for other businesses, control over essential resources, or regulatory advantages. In some cases, monopolies may be established through government regulation, such as utility companies that are granted the exclusive right to provide services in a specific area.

The other options illustrate different market structures: the first option refers to a competitive market with many sellers; the third suggests a lack of regulation but does not indicate the concentration of sellers; and the fourth points to a market structure that allows multiple sellers, which would not align with the definition of a monopoly.