Monopoly - Characteristics Of Monopoly


MONOPOLY is that market form in which a single producer controls the whole supply of a single commodity which has no close substitute.
XI Economics Monopoly Characteristics Of Monopoly

What is the difference between Total Cost, fixed cost and variable cost?


Following are the characteristics of monopoly.

1. Monopoly is one the type of imperfect market

2. There are no close substitute of the firm’s product

3. There is only one producer in the market or only one firm controlling over 80% market share.

4. Government may put restriction on the entry of business such as previously private sector was not allowed to operate domestic flight in Pakistan to compete with PIA

5. Firm may control over supply of raw material such as Sui Southern Gas has monopoly for supply of natural gas. KESC has monopoly for supply of electricity of in Karachi.

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