A monopoly is a market situation in which one firm has at least 25% control over production and pricing, and in which other firms are prevented from competing due to barriers of entry. The monopolist is therefore able to charge whatever price it wishes and restrict its output when necessary. This behaviour maximises profits for the corporation, but is not in the interest of the consumer.

In practice, it is very rare for a true monopoly situation to arise, as competition from alternative product often exists. If there is a near-monopoly situatuin, the government will often intervene and nationalize the firm.