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Essay text:
(i) Define monopoly
Spectrum of Market Structures:
Definition: Most extreme form of imperfect market with little or no competition & firm supplies a major part of industry output.
Definition: Most extreme form of imperfect market with little or no competition & firm supplies a major part of industry output.
(ii) State the characteristics of a monopolist
· There are no close substitutes
· There is presence of barriers to entry.
· Demand is likely to be price inelastic
BODY
2. Why monopolies exist?
- EOS
In some industries, high overheads mean that the market size limits the no. of firms that can exist & simultaneously benefit from EOS in the industry...
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