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In economics, a monopoly is a market structure where a single seller or producer has a dominant position in an industry or sector.  Here are some characteristics of monopolies: Profit maximizer: Monopolists choose prices and outputs to maximize profits. Price maker: Monopolists decide the price of the product by determining the quantity. Price discrimination: Monopolists can change the price or quantity of the product.  Monopolies can benefit from economies of scale, which is the ability to produce mass quantities at lower costs per unit. They can also set prices and keep pricing... Show more

In economics, a monopoly is a market structure where a single seller or producer has a dominant position in an industry or sector. 

Here are some characteristics of monopolies:
Profit maximizer: Monopolists choose prices and outputs to maximize profits.
Price maker: Monopolists decide the price of the product by determining the quantity.
Price discrimination: Monopolists can change the price or quantity of the product. 

Monopolies can benefit from economies of scale, which is the ability to produce mass quantities at lower costs per unit. They can also set prices and keep pricing consistent and reliable for consumers. 
However, monopolies can harm consumer interests because there is no suitable competition to encourage lower prices or better-quality offerings. Monopolies can also create deadweight loss, which is a loss of economic efficiency. 
 

Related Test: Economics 101 Practice Test: Competitive Markets

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