Define Monopoly.explain How Price Is Determined Under Monopoly?


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Muhammad Abdullah786 Profile
As we the behavior of a firm working under competitive condition both in short run and in long run. But in real life the model of perfect competition is hardly available accordingly at the other extreme we have a market model of monopoly. The model where a single firm dominates the whole market. No doubt this model is also rare. However this model will help us in understanding the working of firm which is close to monopoly. In this respect we will came to know about the following:

Concept of monopoly, causes of monopoly, costs and revenues under monopoly, equilibrium of monopolist under short run, equilibrium of monopolist in long run, effects of monopolist equilibrium, price discrimination, Multiplan monopolist, bilateral monopoly, dumping and comparison of monopoly and perfect competition model.

Monopoly refers to the market of a particular commodity where there is only one seller of the said commodity. Monos are a Greek word which means sole or single and polio means sell. Monopoly thus employees mean exclusive possession or control of the supply of the commodity by a single seller. The seller has a privileged situation regarding his singles. As a result he is not afraid of any invasion of the new seller.

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