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A monopoly may also have monopsony control of a sector of a market. Likewise, a monopoly should be distinguished from a [[cartel]] (a form of oligopoly), in which several providers act together to coordinate services, prices or sale of goods. Monopolies, monopsonies and oligopolies are all situations in which one or a few entities have [[market power]] and therefore interact with their customers (monopoly or oligopoly), or suppliers (monopsony) in ways that distort the market.{{citation needed|date=December 2012}}
Monopolies can be formed by mergers and integrations, form [[natural monopoly|naturally]], or be established by a government. In many jurisdictions, [[competition law]]s restrict monopolies due to government concerns over potential adverse effects. Holding a dominant position or a monopoly in a market is often not illegal in itself; however, certain categories of behavior can be considered abusive and therefore incur legal(neymar) sanctions when business is dominant. A [[government-granted monopoly]] or ''legal monopoly'', by contrast, is sanctioned by the state, often to provide an incentive to invest in a risky venture or enrich a domestic [[advocacy group|interest group]]. [[Patent]]s, [[copyright]]s, and [[trademark]]s are sometimes used as examples of government-granted monopolies. The government may also reserve the venture for itself, thus forming a [[government monopoly]], for example with a [[state-owned company]].{{citation needed|date=June 2012}}
Monopolies may be [[natural monopoly|naturally]] occurring due to limited competition because the industry is resource intensive and requires substantial [[overhead (business)|costs]] to operate (e.g., certain railroad systems).<ref>{{cite journal |last1=OECD |title=Railways: Structure, Regulation and Competition |journal=Policy Roundtables |date=1997 |pages=7 |url=https://www.oecd.org/daf/competition/sectors/1920239.pdf |access-date=April 20, 2022}}</ref>
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