1a) What is monopoly?

According to the American Heritage dictionary, ‘monopoly’ is described as:
i) a right granted by a government giving exclusive control over a specified commercial activity to a single party;
ii) a company or group having exclusive control over a commercial activity;
iii) a commodity or service so controlled.
A monopoly is a market with a single supplier of goods or services that has no close substitutes and in which natural or legal barriers to entry, prevents competition. Therefore, a monopoly exists when there is only one firm in the industry that has exclusive rights to manufacture and distribute its unique range of service or product.

Market for local telephone service, gas, electricity, and water are some examples of local monopoly. GlaxoSmithKline has a monopoly on AZT, a drug that is used to treat AIDS. DeBeers, a South African firm, controls 80 percent of the world’s production of raw diamonds-close to being a monopoly but not quite......

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Title: Econ 202 Principles Of Contemporary Macroeconomics
Approximate Word Count: 3105
Approximate Pages: 13 (250 words per double-spaced page)

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