Monopoly Markets
A monopoly is a market structure where one firm dominates the market and has significant control over prices and supply. A pure monopoly exists when only one firm supplies the entire market.
Characteristics of Monopoly
Single Supplier – One firm is the main or only seller in the market.
Price Maker – The firm can set prices because it has strong market power.
Imperfect Knowledge – Customers and competitors may not have complete information about the firm's products or methods.
High Barriers to Entry – It is difficult for new firms to enter the market due to:
Economies of scale
Ownership of key resources
Patents, trademarks, and copyrights
High advertising costs
Legal restrictions
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