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Explain four features of monopoly as a form of product market.

      

Explain four features of monopoly as a form of product market.

  

Answers


gideon
- There is only one seller/supplier for the entire market.
- The products supplied do not have close substitutes in the entire market
- Difficult for other firms/suppliers to enter the market due to restrictions.
- Price are fixed by suppliers as he has control of output.
- Price discrimination where supplier sell the same product at different prices to different consumers
- The demand curve steeply is the same as that of the industry as monopolist is both the firm and
the industry.
- A monopolist may exploit the consumer by restricting output and selling at higher prices.
- A monopolist may produce low quality due to lack of competition.
gideon1 answered the question on September 30, 2017 at 11:22


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