Define monopoly state the main features of monopoly
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- Monopoly:
a pure monopoly has pricing power within the market.There is only one supplier who has significant market power and determines the price of its product. A pure monopoly faces little competition because of high barriers to entry, such as high initial costs, or because the company has acquired significant market influence through network effects.
- Features
only one seller and large number of buyers.
he is price maker.
super normal profit even in long run.
price discrimination is possible.
higher prices and lower output.
new firms cannot enter in industry either in short or in long run
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