chapter 15- monopoly
What is a Monopoly?
2. The only provider of a particular service
- A monopoly is a business which is-
2. The only provider of a particular service
- A business is considered to be a monopoly if its product/service does not have close substitutes, meaning that it is the main seller in a particular market.
- A monopolist is a ‘price maker’ not a ‘price taker’.
- The main cause of monopoly is ‘barriers to entry’: other firms are unable to enter the market and compete with it because they are the dominant seller in the market.