Monopoly – Meaning
The word monopoly has been derived from the combination of two words i.e., ‘Mono’ and ‘Poly’. ‘Mono’ refers to a single and ‘poly’ means the seller. In this way, a monopoly refers to a market situation in which there is only one seller of a commodity. Hence, there is no chance for competition.
Monopoly – Definition
Monopoly is a market structure characterized by a single seller, selling a unique product with the restriction for a new firm to enter the market. A monopoly is a form of market where there is a single seller selling a particular commodity for which there are no close substitutes.
Features of Monopoly
- There is a single producer/seller of a product
- The product of a monopolist is unique and has no close substitute
- There is a strict barrier for entry of any new firm
- The monopolist is a price-maker
- The monopolist earns maximum profit/ abnormal profit