According to the theory of market structure in the real world, there are many forms of market structures available which are that of perfect competitor where different producers come together to make a single unique good, monopoly structures where there is a single producer creating a unique good, monopolistic competition with different producers working on goods that are only slightly differentiated, and then, there is the oligopoly where few producers with single or slightly differentiated goods are produced. The monopoly structure is usually targeted by Governments in order to help reduce costs for customers.
The monopolist structure is one where the producer or the business that produces a good is the only one that produces it and has no other substitutes to produce it . Where an entire industry is only defined by one company then such a market is called the monopoly market. True monopolies exist only in theory; however, oligopoly which is a slightly differentiated variant of the monopoly exists at large. True monopolies do not exist because of countries investing in legal barriers to stop the formation of a monopoly.
A monopoly and the need to break them up can be understood by some of its characteristics from the supply demand curve. Where the price does not have any impact on the elasticity of demand, then there will be a one to one relationship between price and quantity. Operating in the elasticity of demand region where price elasticity it always between -1 and −∞, these monopolistic organizations are able to control the price, supply structures of the market hierarchy.