For the board game, see Monopoly (board game)
A monopoly (from the Greek words "Mono," meaning "Singular" and "Poly," meaning "plentiful") is a single firm that effectively has no competitors in its market. The monopoly may then charge consumers a price that exceeds its marginal cost, but only in situations where the monopoly good does not have close substitutes. Monopolies producing goods with close substitutes may be monopolies in their own narrow market, but would not be able to enjoy the market power typically associated with monopolies.
In the United States, as a result of the Sherman Antitrust Act of 1890 and subsequent legislation, monopolization is illegal; more specifically,
Monopolies then to thwart wage growth.
The word monopoly is one that has undergone a transformation over the years. During the American Revolution, monopolies were recognized not just to be a single entity with a unitary market position. Monopolies were, such as the East India Company, coupled with the force of law preventing entrants from appearing. This legal advantage is what cemented their monopolist position. Lord Coke described monopolies this way:
Hawkins, who worked with Coke, had a similar definition:
Under the original definition of a monopoly, which involved a legally binding and enforceable grant of exclusivity, a company such as Microsoft or Standard Oil would not apply. It should be noted that the new definition of a monopoly is much more favorable to Big Government interests.
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