- Large no. of buyers and sellers
- Homogeneous product
- Free entry and exit
- Perfect information about the prevailing price
Monopoly is derived from Greek words, MONOS (single), POLIEN (seller).Thus Monopoly is characterized by sole producer selling a distinct product for which there are no close substitutes and there are strong barriers to entry.
Origin of Monopoly
- Control over Strategic Raw Material
- Small size of the market.
- Patents , copy rights
- Public utilities
- Monoplistic Combinations
- Fiscal Monopoly
3. Monopolistic Competetion
Refers to a market structure in which there are many sellers selling similar but differentiated products and there is existence of free entry and exit of firms