Monopolyrefers to a market situation where there is only one seller or producer supplyingunique goods and services.it is a single seller who has a complete control over a specific industrythere is nobody else selling anything like what the monopolist is producing.there is no close substitute.

Under monopoly, the consumer has only 2 choices:buy the monopolist’s product or none at all

Characteristic:single seller or producerunique product or serviceimpossible entry into the market

Single seller or producermonopoly market is comprised of a single supplier selling to a multitude ofsmall, independently-acting buyer.monopoly means a single firm is the industryone firm provides the total supply of a product in a given market

Unique productthere is no close substitutes for the monopolist’s product

Impossible entrybarriers to entry are so severe so that it is impossible for new firms toenter the market

barriers to entry may include:sole ownership of a vital resourcelegal barriers like government franchises and licenseseconomies of scale

Other characteristics:monopolist dictates the price of his commoditiesno need for an extensive advertising or sales promotion

Output Price TR MR TC ATC MC

1 16 16 16 20 20  

2 15 30 14 30 15 10

3 14 42 12 36 12 64 13 52 10 42 10.50 6

5 12 60 8 50 10 8

6 11 66 6 63 10.60 13

7 10 70 4 84 12 21