Explain the important characteristics of monopoly market.
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Explanation:
monopoly can be recognized by certain characteristics that set it aside from the other market structures:
profit maximizer:- a monopoly maximizes profits. Due to the lack of competition a firm can charge a set price above what would be charged in a competitive market, thereby maximizing its revenue.
pricemaker:- the monopoly decides the price of the good or product being sold. The price is set by determining the quantity in order to demand the price desired by the firm
High barriers to entry: other sellers are unable to enter the market of the monopoly.
Single seller: in a monopoly one seller produces all of the output for a good or service. The entire market is served by a single firm.
Price discrimination: in a monopoly the firm can change the price and quantity of the good or service.
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