Gujarat BoardEnglish MediumSTD 11 CommerceEconomicsMarket3 Marks
Question
What is meant by monopoly ? State the feature of monopoly ?
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Answer
The term monopoly is divided from Greek words 'monos' which means single and 'polein' which means seller.
So when there is in whole market only one firm is producer or seller then it called monopoly.
The discussion of monopoly is in the context of limited monopoly.
'Monopoly is such a market situation where the monopolists produce the product where close best products are not available and that is why the production of other producers does not affect the sale of monopolistic or its price."
Following characteristics are seen m monopoly market.
Only one producer or seller and unlimited buyers.
Absence of near substitute product.
Restriction on the entry for new firm.
Control over sells or price.
Abnormal profit in long run.
Price discrimination can be possible.
Concept of one firm only.
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