How does a monopoly occur?
A monopoly occurs when one company has exclusive possesion and or control of a market, goods or services in a particular market. For example, if AT&T was the only large provider or cellular services, they would have a monopoly of cell phone services. The reason this is usually a negative thing is because without competition, the company can charge high prices for their goods/services. For example, if AT&T had a monopoly on cell phone services, they could charge $500/month per line and people would be forced to pay that if they wanted a cell phone because they wouldn’t have the option of taking their business somewhere else.
