Monopolies are different from other types of market setups, like perfect competition and oligopoly. Here’s what makes them special:
Only One Seller: In a monopoly, there is just one seller in the market. This seller controls the supply and price of their product all by themselves.
Hard to Join the Market: Monopolies have barriers that stop other companies from coming in. These can be things like patents, which are legal protections for inventions, high costs to start a business, or special access to important resources.
They Set the Price: In perfect competition, sellers accept the market price. But in a monopoly, the single seller can set the price higher because there’s no competition. They control how much of their product is available.
Fewer Choices for Consumers: Since there’s only one seller, customers have fewer choices. This can result in less new and exciting products coming to the market.
All of these aspects make monopolies quite different from other market types, and they often mean higher prices for consumers!
Monopolies are different from other types of market setups, like perfect competition and oligopoly. Here’s what makes them special:
Only One Seller: In a monopoly, there is just one seller in the market. This seller controls the supply and price of their product all by themselves.
Hard to Join the Market: Monopolies have barriers that stop other companies from coming in. These can be things like patents, which are legal protections for inventions, high costs to start a business, or special access to important resources.
They Set the Price: In perfect competition, sellers accept the market price. But in a monopoly, the single seller can set the price higher because there’s no competition. They control how much of their product is available.
Fewer Choices for Consumers: Since there’s only one seller, customers have fewer choices. This can result in less new and exciting products coming to the market.
All of these aspects make monopolies quite different from other market types, and they often mean higher prices for consumers!