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Monopoly
A monopoly is a market structure characterized by a single seller controlling a large portion of the market, lacking significant competition, and often able to influence prices.
Natural Monopoly
A market structure where a single firm can produce the entire market's supply at a lower cost than could multiple firms due to economies of scale.
Economies of Scale
Economies of scale refer to the cost advantage experienced by a firm when it increases its level of output. The advantage arises due to the inverse relationship between per-unit fixed cost and the quantity produced.
Elastic
A characteristic of a demand or supply curve that indicates a high sensitivity to changes in price.
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