Monopolistic Market Definition

A monopolistic market is a market structure in which there is only one producer or seller of a product or service. This means that the firm has complete control over the price of the good or service, and can set any price it chooses. There are no close substitutes for the good or service being produced, so consumers have no choice but to purchase from the monopolist. Monopolies often arise when a firm has a unique product or enjoys economies of scale (i.e. it is able to produce at a lower cost than its competitors).