Explain how a monopoly affects competition in a market

A monopoly is a type of market structure where by the market is dominated by one company. Due to the lack of participants in the market, the monopoly has the ability of charging high prices with low quantities due to the lack of choice resulting in an inelastic demand curve. This creates high barriers to entry, resulting in low competition for the monopoly. This has adverse affects on consumers resulting in low consumer surplus and economic welfare.