monopoly
muh-NOP-uh-lee
/məˈnɒpəli/
Exclusive possession or control of the supply of or trade in a commodity or service.
Implies complete absence of competition, giving a single supplier total pricing power.
The story behind the word. From Ancient Greek 'monopolion', combining 'mono-' (alone/single) and 'polein' (to sell). Aristotle used the term in 'Politics' when describing how Thales of Miletus bought up all the olive presses in Chios and Miletus to control olive oil production.
Word relationships
- cartel: A cartel is a group of independent firms acting together, whereas a monopoly is a single dominant seller.
- perfect competition: Perfect competition features many small sellers with zero individual market power.
Commonly confused with
- oligopoly: Monopoly means exactly one seller; oligopoly means a small handful of sellers.
Word family
- monopolize (verb): To obtain exclusive control over something.
- monopolistic (adjective): Having traits of a monopoly.
Collocations
- natural monopoly
- grant a monopoly
- monopoly power
Idioms & expressions
- monopoly money
Example sentences
- "The government filed a lawsuit accusing the tech giant of maintaining an illegal monopoly in online search." Antitrust litigation
- "A monopoly can raise prices above marginal cost without immediately losing customers to rivals." Classical economic literature
Memory hook
MONO means ONE seller in the market. Mono = One sole seller.
When not to use
Do not use if there are multiple strong competitors; use oligopoly or market leader instead.
Fun facts
- The board game Monopoly was originally invented by Lizzie Magie as 'The Landlord's Game' to teach the dangers of concentrated land monopolies.
Related words
Explore more words
monopolize, exclusivity, patent, dominate, antitrust, proprietary
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