Table of contents

 1. INTRODUCTION
 2.FEATURES
 3. TYPES OF MONOPOLY
 4.FORMATION OF MONOPOLY
 5.ADVANTAGES
 6.DISADVANTAGES
INTRODUCTION
Monopoly is a market situation in which there is only
one seller of the product and services with barrier to
entry of others. The gross elasticity of demand with
every other product is very low. Monopolist can sell
his commodity at any prices he likes . He has full
control over the price , However a monopolist can
certainly fix the price at which he sell his
commodity but at the same time he cannot
determine the amount of commodity that consumer
will buy.
FEATURES:

No Close
Substitute

One seller large

number of buyers

Restricted entey
of new firm

Full control over

the Price
TYPES OF MONOPOLY :

Imperfect
Monopoly

Perfect Private
monopoly monopoly

Public
Technological
Monopoly
Monopoly

Simple
Monopoly
Formation of a Monopoly :

A monopoly could be created by merging

of two or more firm . This will reduce
competition .such merger are subject to
close regulation and may be prevented
if the two firms gain a combined market
share of 25 % or more.
Advantages :

Good Company
sources for may enjoy
government massive
revenue profit

Requires
less Economies
marketing of large
budget scale
DISADVANTAGES :
High
chances of No
customers alternative
exploitatio s for
n customers

Higher Poor
price for customers
low quality services
goods
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