What is the difference between monopoly and perfect competition? Perfect competition is the market in which there is a large number of buyers and sellers. The goods sold in this market are identical. A single price prevails in the market.
4 most features of a monopoly market. Monopoly is an extreme form of market structure. The word monopoly is derived from two Greek words-Mono and Poly. Mono means single and Poly means 'seller'. Thus monopoly means single seller.
The necessary condition of equilibrium is the equality of marginal cost and marginal revenue. The same condition applies to monopoly also. Therefore equilibrium of a monopoly firm is established at a point where MC is equal to MR.
Monopoly refers to a market situation where there is only single seller of a commodity and there are no close substitutes of that commodity. In such a situation, monopolist or the single seller of the commodity has some kind of power or control over the supply of a commodity and hence he is in a position to influence the price.
Five most important characteristics of Monopoly are 1. Large number of firms 2. Product differentiation 3. Free entry and exit 4. Lack of perfect knowledge of the market and advertisement cost.
The word ‘Monopoly’ has been derived from the two Greek words ‘Monos’ and ‘Polus’. ‘Monos’ means single and ‘Polus’ means seller. Hence, monopoly means single seller. The extreme form of imperfect competition is monopoly.
The term monopoly means a single seller. In economics, this term refers to a firm the product of which has no close substitute in the market. It is, in that sense, a single-firm industry.