Define the term monopoly and outline its characteristics.

Monopoly is a market structure where a single firm controls market's output and market share.
Monopoly's characteristics are the following:There is only one firm in the industry Changes in the firm's output cause changes in the priceFirm produces unique goods and servicesThere are significant barriers to entry the industryNeither allocative nor productive efficiency will be achievedExamples:Microsoft Local Utilities

ID
Answered by Iosif D. Economics tutor

2030 Views

See similar Economics IB tutors

Related Economics IB answers

All answers ▸

What are the determinants of price elasticity of demand?


What are the different assumptions of a perfectly competitive market and a market with monopolistic competition?


Explain three difficulties economists face when they try to measure unemployment accurately.


Explain how a change in one of the determinants of supply could lead to a decrease in the price of rice.


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences