What do you mean by monopoly market? Explain the features of monopoly.

1.	What do you mean by monopoly market? Explain the features of monopoly. Also explain the short run equilibrium of a monopoly producer.
Answer» Monopoly may be defined as a market situation in which there is only a single seller. He controls the entire market. The term monopoly has derived from two Greek words such as ‘mono’ means single and poly means ‘seller’. The meaning of the combined term is single seller. In a boarder sense, a monopolist is single seller of a commodity which does not have close substitutes. E.g. KSEB Features of Monopoly Market Some of the salient features of monopoly are as follows: (1) There is only a single firm producing the product (2) There is no close substitute for the product (3) Entry is denied for other producers (4) Since there is only one seller, the firm and the industry are same (5) The firm under monopoly is the price maker

What do you mean by monopoly market? Explain the features of monopoly. Also explain the short run equilibrium of a monopoly producer.

Answer»

Monopoly may be defined as a market situation in which there is only a single seller. He controls the entire market. The term monopoly has derived from two Greek words such as ‘mono’ means single and poly means ‘seller’. The meaning of the combined term is single seller. In a boarder sense, a monopolist is single seller of a commodity which does not have close substitutes.

E.g. KSEB

Features of Monopoly Market Some of the salient features of monopoly are as follows:

(1) There is only a single firm producing the product

(2) There is no close substitute for the product

(3) Entry is denied for other producers

(4) Since there is only one seller, the firm and the industry are same

(5) The firm under monopoly is the price maker

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