monopoly

muh-NOP-uh-lee /məˈnɒpəli/
nounB2SATGREGMAT
generalacademic

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.
LangBlitz
Take your vocabulary further with LangBlitz

Our English vocabulary app: FSRS spaced repetition, 5,000+ curated words across 119 topic groups, CEFR A1 to C2. Explore your mastery with the beautiful Vocabulary World feature.