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Monopoly Market

In: Business and Management

Submitted By magicboy
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5.2.3 Monopoly Market
Mono means one and poly means seller. Therefore, meaning of the word monopoly is only one seller. The dictionary meaning of the word monopoly is the sole right to produce and sell a good by a person, government or corporation. Therefore, when a farm produces a good and supplies it to innumerable customers, then the farm is called a monopoly business and the market where that good is bought and sold is called the monopoly market. The farm that achieves the monopolistic right to sell a good, that farm controls the supply of the good in the market. Up to a fixed period of time, no other farm than this particular one can produce that good, so there is no difference between a farm and an industry in the monopoly market. A completely monopolistic market may be a bit difficult to be found. But a number of examples can be given of the almost monopoly market. For example, Bangladesh oxygen, Titas gas, etc.
Task:
Make a list of the goods that are bought and sold in the monopoly market.
5.2.3 Characteristics of Monopoly Market
The following characteristics can be identified if the monopoly market is analysed.
1. The seller controls the production or supply:
In a monopoly market, there is only one producer or seller. Therefore, the seller is the one who controls the production and supply of the good in the market entirely.
2. There is no near alternative good:
There is no near alternative good for the product produced and sold by the monopolistic farm. That means, there is no similar or nearly similar good for that product.
3. Try to acquire the highest profit:
The objective of the monopoly businessman is to get the highest profit.
4. The farm and industry are the same for the monopoly business:
Thereisonlyone
farm in monopoly market. Thereby, that farm is known as the industry.
5.
The average revenue curve and the
marginal…...

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