What Would Establish A Monopoly?

In the field of economics, the word monopoly is used to define a persistent situation in the market in which there is only one agency which provides or sells of a product or service. In other words, a monopoly is characterised as market in which each of the goods and services are sold by just one seller.

There are three main characteristics of a monopoly. The three main characteristics of a monopoly are the presence of a single seller in the market, the absence of no close substitutes in the market (the products or services which are sold in a monopoly are unique and recognisable products or services) and the single seller in the market is (obviously) the sole price maker.

There are also two variable types of monopolies. One type of variable monopoly is called a sub-total monopoly and the other type of variable monopoly is called a legal monopoly.