A monopoly occurs when there is no competition in the holding or production of a good or service. The Portuguese had a monopoly on the exploitation of Brazil wood in Brazil.
Economic theory explains and gives an example of various types of monopoly. The most common example is the natural monopoly, which occurs when the fixed costs of supply are so high that it makes the implementation of competition unfeasible. For example, the water supply. This service requires tubuar infrastructure, being impracticable the consequence of the exploitation by more than one company.
