Question

Monopoly is a market structure characterized by a single seller, selling a unique product in the market. In a monopoly market, the seller faces no competition, as he is the sole seller of goods with no close substitute. Monopoly typically has an unfair advantage since they are either the only provider of a product or control most of the market share or customers for the product. Although monopolies might differ from industry-to-industry, they tend to share similar characteristics. Discuss at least three (3) of these characteristics in your own words.

Answer 1

Ansuro - MONOPOLY MARKET Definition > In a monopoly_ market, there is single seller of a particular - brzduct with so strong.com beetebimfom.my other seller CHARTISTICS >> D SINGLE SELLER OF PRODUCT >> and In a monopoly market, usually there is a single or supplies a particular product commodity Such a firm constitutes the entire industry. distinction between the firm and Industry. firm which produces is fair to say that Also, there is no 22 No Close SUBSTITUTES → * Usually, a monopolist sells a product which does not have any close substitutes. Hence, the cross Elasticity of demand for such a product is Either Zero or very small. Hence in monopoly market, the monopolist faces downward sloping demand curve In a certain Extent, all goods are substitutes for one another. However, certain Essential characteristis in a ammodity or group of Commodities can lead to gaps in chain of substitution. 3) PRICE MAKER Since there is only one firm selling the product, it becomes price maker for the whole Industry. The consumers have to accept the price set by form as there are no other sellers of CS Scanned cloich sie CamScanner