The lack of competition within a monopoly means that the monopolists set their own prices.
Explanation:
A monopoly may emerge in a market where one company, business, or entity is the only dominant force that offers a specific product or service and, hence, meets customers’ demand fully. With time, this entity gains enough leverage to drive other contenders away from the marketplace, and that is the key feature of monopoly. There are many reasons as to why this happens.
Typical examples include the economic need for a particular technology, high capital, government interference, patents, or high distribution overheads. The lack of competition within a field allows a monopoly to set its own prices. Since customers do not have any other options that could serve as a substitute, they have nothing left to do than agree in paying more. They lose any control over price formation.
