Monopoly pricing

Okay kiddo, have you ever played with blocks and toys? Imagine you have all the blocks and everyone else wants to play with them too. But you're the only one who has them. You can charge your friends if they want to play with your blocks, and they have to pay whatever you tell them to. This is called a monopoly, because you're the only one controlling the blocks.

Now, a company can be like that with certain products. Let's say a company makes the best ice cream and no one else can make it. They can charge a lot of money for the ice cream, because there's no one else selling it. That's called monopoly pricing.

Just like how your friends might get sad if you charge too much for block playtime, some people might not be able to afford the expensive ice cream. And if no one can afford it, the company won't make as much money. So it's important for companies to balance how much they charge for their product so that people can still afford it, but they can also make money.