Meaning of Monopoly Market
Monopoly refers to the market situation where there is one seller and there is no close substitute of the commodities sold by seller . The seller has full control over the supply of that commodity. Since there is only one seller ,so a monopoly firm and industry are same.
Features of Monopoly Market
Monopoly refers to the market situation where there is one seller and there is no close substitute of the commodities sold by seller . The seller has full control over the supply of that commodity. Since there is only one seller ,so a monopoly firm and industry are same.
Features of Monopoly Market
- Single seller and large number of buyers : Under monopoly there is one seller and therefore a firm faces no competition from other firms. Though there are large numbers of buyers ,no single buyer can influence the monopoly price by his action.
- No close substitute: Under monopoly there is no close substitute for the product sold by the monopolist.
- Restriction on entry of a new firm: Under monopoly new firm cannot enter the industry.
- Possibility of price discrimination: It is defined as that market situation where a single seller cannot sell the same commodity at two different prices in two different markets at the same time, depending upon the elasticity of demand on the two good s in their respective market.
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