Showing posts with the label M0NOPOLY


MONOPOLY Monopoly is a market situation in which an individual or firm controls the total output or supply of a good or service which has no close substitutes. A monopolist is the only producer or seller of a particular commodity in the market. In real life, pure monopolists do not exist since there are hardly any goods or services that do not have substitutes. What are the Features of Monopolistic Markets 1. There is only one seller or a combination of firms under one management, but there are many buyers. The single seller has no rivals. 2. The monopolist has the ability to control either price or output. He cannot control both at the same time. He can raise price if demand for his commodity is inelastic. On the other hand, he could earn higher prices by curtailing his output. 3. Entry is restricted or barred in monopolistic markets. Other firms o/ producers are not allowed to enter the trade when they wish. 4. There is no perfect substitute for the products of the monopolist. His pr