Which of the following is NOT a feature of a monopoly?

Key Points

• A monopoly is characterized by one seller and many buyers.
• In a monopoly, there are no close substitutes for the product or service provided by the seller.
• The seller in a monopoly has full control over the price of the product or service.
• The market condition of one buyer and many sellers describes a monopsony, not a monopoly.

Additional Information

• A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity.
• This contrasts with a monopsony where there is only one buyer and many sellers.
• Monopolies can be established by a government, form naturally over time, or form as a conglomerate of companies.
• Monopolies can lead to higher prices and inferior products due to the lack of competition.
• Antitrust laws in many countries regulate monopolistic practices to protect consumers.