What is monopoly? Explain the conditions necessary for the existence of monopoly?
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Answer:
A Monopoly is a form of market in which there is only one seller of a product with no close substitutes.
Example : Indian Railways, Coal India Limited, Bharat Heavy Electronics Limited etc.
Explanation:
Conditions Required for Existence of Monopoly :
- There are no close substitute for the good which was produced by monopoly firm/company.
- Only one firm operating in the market.
- There are high barriers to entry and difficulty registration process.
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