Definition
- Monopoly
- A monopoly is a market in which one firm produces all of the output, so it faces no significant competition.
- Not to be confused with: Barriers to entry
- Barriers to entry are the legal, technological or market forces that discourage or prevent potential competitors from entering a market.
Test yourself
What is the difference between monopoly and barriers to entry?
A monopoly is the market with one firm; barriers to entry are what keep it that way.
Learn it properly: the module
Also in: Monopsony