Monopoly

Monopoly refers to a market structure where a single seller or producer controls the entire supply of a product or service, giving them significant Pricing Power and market influence. This situation often arises when barriers to entry are high, preventing other competitors from entering the market.

Examples of monopoly include:

• Utility Companies: Many regions have a single provider for water or electricity, which can be considered a natural monopoly due to the high Infrastructure costs involved.
• Microsoft in the 1990s: Microsoft held a dominant position in the PC operating system market, leading to antiTrust litigation due to its monopolistic practices.

Notable cases include:

• United States v. Standard Oil Co. (1911): The Supreme Court found that Standard Oil had created a monopoly through unfair practices and ordered its breakup into smaller companies.
• United States v. Microsoft Corp. (2001): The court ruled that Microsoft had engaged in anti-competitive behavior to maintain its monopoly in the PC market.