Question

What is monopoly? What are its characteristics?​

Answer 1

A monopoly market is characterized by the profit maximizer, price maker, high barriers to entry, single seller, and price discrimination.

The four key characteristics of monopoly are:

(1) a single firm selling all output in a market,

(2) a unique product,

(3) restrictions on entry into and exit out of the industry, and more often than not

(4) specialized information about production techniques unavailable to other potential producers.