Monopoly is a market situation where there is a single seller of a commodity which has no close substitutes.

Main features of a monopoly market are:

(i) Single seller- Under monopoly there is only seller of commodity in the industry, so the difference between firm and industry get vanished.

It means the monopolist has full control over the supply and price of commodity.

(ii) No close substitute - The monopolist produces a distinct product which has no close substitute in the market. Therefore the monopoly firm has no fear of competition from any other commodity.

(iii) Barriers on entry - There are strong or significant barrier to the entry of new firms. These barriers may be legal barriers like- patent right or licensing etc., as a result monopolist firm can earn abnormal profit in the long run. 

(iv) Price discrimination- When a monopolist charge different prices from different buyers for the same product is called price discrimination. It’s a distinct feature of monopoly market.

(v) Independent price policy - In monopoly, firm and industry are same so the firm has complete control over the output and it fixes its price by itself. Thus firm is price market in monopoly.