A monopoly is when a company has exclusive control over a good or service in a particular market. Not all monopolies are illegal. ... But monopolies are illegal if they are established or maintained through improper conduct, such as exclusionary or predatory acts. This is known as anticompetitive monopolization.

Is it illegal for a company to be a monopoly?

Obtaining a monopoly by superior products, innovation, or business acumen is legal; however, the same result achieved by exclusionary or predatory acts may raise antitrust concerns.

Why monopoly is bad for the economy?

The monopoly firm produces less output than a competitive industry would. The monopoly firm sells its output at a higher price than the market price would be if the industry were competitive. The monopoly's output is produced less efficiently and at a higher cost than the output produced by a competitive industry.