What is a Monopoly?

A monopoly is a market structure where one producer or seller holds a power within a certain market. 

A monopoly-status company lacks alternatives for its goods and faces little internal rivalry. Monopolies can set prices and establish barriers to entry for rival businesses.

Companies can become monopolies by vertically integrating their operations to control the whole supply chain from manufacturing to sales, or by acquiring rival businesses to become the only manufacturer.

Monopolies may establish prices and maintain consistent, predictable pricing for consumers without competition. Monopolies benefit from economies of scale and can frequently produce large volumes for less money per unit. 

On the other hand, a business that controls a market or an industry might use its position to set prices, produce low-quality goods, and create artificial scarcities. Because there are few or no alternatives in the market, consumers must believe that a monopoly functions morally.

Source: Investopedia