Monopoly
A monopoly condition means an exclusive ownership of a market by a supplier of a product or a service for which there is no substitute or alternative available. In this condition the supplier is able to find out the price of the product with no fear of competition from substitute products or through other sources. It is usually implicit that a monopolist will decide a price that maximizes revenues or profits.
Types of market structures
Competition is openly influenced by the means through which companies manufacture and allocate their products. Different businesses have diverse market structures—this means, different market features that finds out the relations of sellers to one another, of sellers to buyers, and so on and forth. Aspects of market structure that lie behind the competitive landscape are: (1) Degree of product differentiation,
(2) Degree of concentration of sellers in industry, and
(3) Ease or difficulty with which new sellers can come into the industry.
Monopoly and its Characteristics
• Single or sole firm in the market.
• Sells differentiated products with no substitutes.
• Firms are barred from entering into the industry.
• Imperfect market conditions prevail.
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