What is a monopoly characterized by?

A monopoly is characterized by only one seller dominating the market and providing goods or services to many buyers. This singular seller has significant market power, allowing it to control prices and limit competition. In a monopolistic market, the lack of competition usually leads to higher prices and restricted choices for consumers since there are no alternative suppliers available. This structure contrasts sharply with other market forms, such as perfect competition, where there are multiple sellers and buyers, facilitating a more balanced market dynamic. Understanding the nature of monopolies helps in recognizing their implications for market behavior, pricing strategies, and overall economic impact.