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The foundation of Monopoly lies in strong barriers to entry of new firms in the industry. This means that certain factors prevent the entry of new firms into the industry or it can be said that they do not want to take up the production of such commodities. Barriers to entry can be natural or even artificial.
In economics monopoly means very few sellers but a lot of buyers. Thus these few sellers, to take advantage of the market, and to make large profits, prevent others from entering the market. They create certain kind of barriers so that their monopolistic situation is guaranteed.
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