Monopoly ppt
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Monopoly is defined as a market situation where there is a single seller with complete control over an industry. Key features of monopoly include a single seller, price discrimination, lack of close substitutes, and restricted market entry. True monopolies generally exist in government controlled markets or through legal barriers like patents and copyrights that provide opportunities to monopolize a market. The Tata Nano is an example of a monopoly in its market segment as Tata is the only seller and there are no close substitutes, along with barriers to entry.
Monopoly ppt
- 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