Who is considered a monopolist?

A monopolist is defined as a firm that is the only producer of a good or service with no close substitutes. This means that the monopolist has significant market power, allowing it to influence the price of the product. Because there are no close substitutes, consumers do not have alternative options, which further strengthens the monopolist's control over the market.

In contrast, producing multiple goods or operating in a competitive market implies that the firm must contend with other competitors and their products, which dilutes the tight control characteristic of a monopolist. Moreover, a firm that can easily enter a market suggests that barriers to entry are low, allowing multiple firms to compete, which is the antithesis of a monopolistic structure. Understanding these distinctions helps clarify what defines a monopolistic market and the unique position a monopolist occupies within it.