Answer: Monopoly has four main features.
- Single seller: Only one firm sells the product or service.
- No close substitutes: Customers cannot easily find a similar alternative.
- Barriers to entry: Legal, financial or technical obstacles make it difficult for new businesses to enter the market.
- Price maker: The seller has significant power to influence the price, although demand still matters.
Example: A utility provider with exclusive legal rights to supply piped water in a city can be an example of monopoly.
Remember: One seller, no close substitutes, barriers to entry and price maker.
