2. MONOPOLY
Monopoly is a market situation where there is
only a single seller with complete control over
an industry.
Features of monopoly
• Single seller
• Price discrimination
• No close substitutes
• Unique product
• Entry is restricted
• Price maker

3. Existance of monopoly
• True monopolies generally exist in
government controlled markets.
• eg. Indian railway
• Monopoly in private business is rare.
• Private firms who have considerable
market share.
• Ex,. Microsoft, intel, google,

4. SOURCES OF MONOPOLY POWER
Economic barriers to entry.
a) Capital requirements
b) Technological superiority
c) No substitute goods
d) Control of natural resources
LEGAL BARRIERS
a) legal rights provides opportunity to monopolise market.
b) Ex,. Patents and copyrights.

5. Application of monopoly
• Example TATA NANO
• Monopoly in its segment.
• Tata , the only seller.
• No close substitutes for nano in the market.
• Barriers to entry in the market(capital
requrement, technology,)

6. EQUILLIBRIUM OF THE FIRM UNDER
MONOPOLY