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

Answered by Iosif D. Economics tutor

1691 Views

See similar Economics IB tutors

Related Economics IB answers

All answers ▸

Using a diagram, show how a polluting factory may cause a negative externality to society, and how a tax might be used to solve this market failure.


What are positive externalities of consumption? Explain with a diagram and give an example.


Do I have to be good at Maths to achieve good results in IB Economics?


What is the crowding out effect and what does it mean for how effective fiscal policy is?


We're here to help

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