A monopoly is a firm that is the sole seller of a product without close substitutes. It has market power to influence prices, unlike competitive firms that are price takers. Key features of monopoly include a single seller, barriers to entry for new firms, and the ability to engage in price discrimination by charging different prices. Monopolies can exist due to control over key resources, economies of scale, or government actions like granting exclusive rights to a private firm. A monopoly determines price and output by producing at the quantity where marginal revenue equals marginal cost to maximize profits.