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Monopoly and Reasons for Its Emergence- Online Economics Classes for Class 12 Monopoly :  It is very difficult for a firm to enter the monopoly market. Also, a monopolist is free to charge any price for its product. Thus, the seller under the monopoly is said to be the price maker and not the price taker. The reasons for its emergence Forming a cartel:  Sometimes, individual firms while retaining their identities, unite into a group and coordinate their output and pricing policy in such a way as o reap the benefits of monopoly. Such a formation is called a CARTEL. A cartel is a business combination under which firms coordinate their output and price to reap the benefits of monopoly. Grant of patent rights:  When a company/ firm introduces new product or technology, its granted patent rights for its production by the government. This exclusive right is provided by the government in the form of a patent This patent right prevents others to produce the same product or uses t