A monopoly happens when a company becomes the single most efficient provider of a product or service. This could be because the company is the only one able to create the product or the company has virtually complete control over the supply. Monopolies are typically considered on the industry level; for example, even though Apple has sole rights over the widely used iPhone, it is still competing with other manufacturers in the smartphone industry.
Monopoly companies have complete control over the price of their goods. Because there is only one source, consumers are forced to purchase at the company's designated price. Additionally, quality and innovation tends to drop because of the lack of competition. The company is no longer forced to upgrade its services or differentiate its products; it can keep its quality at the lowest accepted and safe levels.
Especially in the case of commodity products and services, consumers are essentially forced to buy from the company regardless of price. For example, public transportation in cities may be heavily scrutinized if the local government decides to raise fare prices. Even if consumers would normally not be willing to pay such a price, they are forced to do so to attend to their daily functions. The U.S. government in particular is extremely careful in making sure that consumers are not subject to purchase coercion; the United States has enforced effective monopolies such as utility companies to regulate their prices and be transparent in their business operations.
Employees are also affected when working for a monopoly company. A monopoly company usually has near absolute control over its costs, including labor wages. If no other company in a market has use of a specialized skill set, the employee is essentially trapped to only work for that company. Also, there are no incentives for employees to increase their proficiency. A monopoly company typically has complete control over their talent and will tend to not offer any premiums for advancement or recognition. Employees can form unions to create equity between the company and labor, but these become less effective for unskilled workers.