Group Members Shalaka bhosle Pooja bhosle Chaitali gadre Ruchita ghodpkar Ekta bhonkar

Roll No. 17 16 44 49 14

WHAT IS MONOPOLY?
MONO means = ONE POLY means= SELL ONE SELLER Or ONE PRODUCER

MONOPLY

Monopoly is market situation where there is only single seller with complete control over an industry. Features of monoply:
Single firm Anti-thesis competition No close substitutes Price maker Downward sloping supply curve.

FEATURES

Single firm: firm and industry identical. No substitute: there are no close substitute of the product. so no choice of buyers. either buy or do without it. Anti-thesis competition: being a single source of supply, there is no competition from any source

FEATURES OF MONOPOLY(COND)

Price maker: monopoly is price maker not a price taker. his price-fixing power is absolute he can vary price from buyer to buyer as per his wish. there may be price differentials in a monopoly. Downward sloping supply curve: monopoly and the industry being one it face downward sloping curve it cannot sell more outputs unless price is lowered.

CONDITIONS:
There are three conditions to be fulfilled in case of monopoly: There is single seller or producer of the product. There are no close substitutes for the product. There are no strong barriers to the entry of new firms.

WHAT MAKES MONOPOLY?

Natural source Possession of technical knowledge Exclusive ownership of raw materials. Legal source Economies of large scale Creation of artificial barreirs

MONOPOLY VS. COMPETITIVE MARKETS

monopoly and perfect competition mark the extremes of market structures. Both monopolies and perfectly competitive companies minimize cost and maximize profit. Both are assumed to have perfectly competitive factors markets.

DISTINCTION
Marginal revenue and price: Product differentiation Number of competitors: Elasticity of Demand Profit Maximization

SHORT-RUN PRICE & OUTPUT DETERMINATION UNDER MONOPOLY

LONG RUN PRICE & OUTPUT DETERMINATION UNDER MONOPOLY

CONCLUSION
A monopoly is a firm that is the sole seller in its market. It faces a downward-sloping demand curve for its product. Like a competitive firm, a monopoly maximizes profit by producing the quantity at which marginal cost and marginal revenue are equal.

CONCLUSION

A monopolists profit-maximizing level of output is below the level that maximizes the sum of consumer and producer surplus.

Monopolists can raise their profits by charging different prices to different buyers based on their willingness to pay