A monopoly occurs when a single company or entity dominates a particular market, controlling the supply of a product or service. This means that consumers have limited choices, as there are no close competitors. Monopolies can arise due to various factors, such as exclusive access to resources, government regulations, or significant technological advantages. In a monopoly, the controlling company can set prices without worrying about competition, which can lead to higher costs for consumers. Governments often regulate monopolies to prevent abuse of power and to promote fair competition, ensuring that markets remain open and accessible to new entrants.