Monopoly and its features.Price Discrimination in monopoly market - 71030

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Define Monopoly and explain its features.Explain price discrimination followed in monopoly market.

Solution Description

 

 

Q. Define Monopoly

 

Ans: Monopoly is that market from in which a single producer controls the whole supply of a single commodity which has no close substitutes. It is a condition of production in which a single firm has the power to fix the price of the commodity or the output of the commodity. It is a situation there exists a single control over the market producing a commodity having no substitutes with no possibilities for anyone to enter the industry to compete.

 

Q. Features of Monopoly

 

Ans: Features of monopoly are:

 

i)       Absence of competition in the market creates a situation of monopoly; hence the seller faces no threat of competition.