Economics Question:
Download Questions PDF

What is a monopoly?


When one business or company dominates its area and squeezes out all its competition, the result is the consumer does not have a free choice, and inevitably, the price of its products or services will increase, and the 'Monopoly' increases its profit. Although, sometimes prices stay low to discourage anyone from entering the market, profit still does occur. Not to be confused with a pure monopoly, where a company has control over the entire market for a product because of barriers.

However, a monopoly is a philosophical process of direct competition leading to a pure monopoly it is not in itself a purely dominating force. It is rather, the process of obtaining competitive grounds for strive toward total control.

Download Economics Interview Questions And Answers PDF

Previous QuestionNext Question
How do the determinants of demand affect the price of a particular product?How does outsourcing affect the economy?