Single Seller

Is there only one retail shop in your street? If yes, you must have observed that shopkeeper is charging some extra price in some of the products.

Hey there this is Deepak Prasad, again I am back with some new concept of economics. So today we will discuss about “Monopoly”. Well above given situation is about monopoly market.

So my friends let me start from beginning.

Monopoly is all about market structure where there is only one producer or seller, that control the entire market. These sellers deal with those products which have no close substitute.

                                                                                                                                       The term monopoly derived from the greek word “Monopolian” which means single seller.

Ok today I shall also give you a popular definition of monopoly.

According to prof. camberlian, “Monopoly refers to the control over supply ”

In other words we can say demand, supply and price of product are directly under the control of the seller.

Lets give me a example, if you are the college student you can realise, if you are not college student. Please do remember those days, when you were in college.

So in every college there is a cafeteria, where you get foods and all. So you must have experienced that foods rate is somewhat higher than outside cafeteria. Why shopkeeper is charging extra because he is the only seller in market. And students will surely purchase the product because they can not go outside always.

NOTE( consider college is a market and students are only customers)