Monopoly
Monopoly is defined as the market structure where there is a single seller of a product having no close substitutes. Thus, the monopoly market has full control over the price of the product. There are a large number of buyers and no competitors. The firm or seller can determine the price of its product. So, it can reduce the price of its products in order to increase sales or can even earn more profit by selling fewer products at a high price.According to Anna Koutsoyiannis, “Monopoly is a market situation in which there is a single seller. There are no close substitutes of the commodity it produces, there are barriers to entry.”
Features of monopoly:
- Single seller and a large number of buyers
- No close substitutes
- Entry barriers
- It is also an industry
- Price maker
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