Monopoly seller is a price maker-explain
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A monopolist is a price maker .It means that he can fix whatever price he wishes to fix for his product. It is because of following reasons: (1) a monopolist is a single seller of the product in the market .there is no competition (2)there there is no close substitute of monopoly product so that there is no fear that the buyers would shift from one product to the other to any significant extent (3)there are legal ,technical or natural barriers to the entry of new firms. so that ,there is no challenge to the price fixed by the monopolist
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A monopolist is a price maker .It means that he can fix whatever price he wishes to fix for his product. It is because of following reasons:
(1) a monopolist is a single seller of the product in the market .there is no competition
(2)there there is no close substitute of monopoly product so that there is no fear
that the buyers would shift from one product to the other to any significant extent
(3)there are legal ,technical or natural barriers to the entry of new firms. so that ,there is no challenge to the price fixed by the monopolist
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