Definition of monopoly, Managerial Economics

Assignment Help:

1. Prof. Thomas "Generally the term Monopoly is used to cover any effective price control, whether of demand or supply of services or goods; hardly it is used to mean a combination of merchants or manufacturers to control the supply price of services orcommodities".

2. Prof. Chamberlain "Monopoly refers to control over supply".

3. Prof. Robert Triffin 'Monopoly is a market situation in that a firm is independent of price changes in product of each and every other firm".

He is known as a monopolist. He is the only producer in the industry. There are no close substitutes for his product. So, when there is just one seller of a commodity and there isn't any competition at all, situation is one of pure monopoly.

A monopolist firm is itself an industry, for distinction between a firm and an industry disappears under monopoly.

In technical language, pure monopoly is a single firm-industry where cross-elasticity of demand between its product and products of the other industries is zero.

Professor E.H. Chamberlin points out that essence of monopoly is control over supply.

Pure monopoly barely exists in reality. It is just a theoretical concept, since even if there were no close substitutes, some kind of competition would always be there, such as a choice between decorating a house and buying a car. Though pure monopolies are a rare phenomenon in developed countries.


Related Discussions:- Definition of monopoly

Trade cycle-hawtrey views, Hawtrey views about Trade Cycle Hawtrey view...

Hawtrey views about Trade Cycle Hawtrey views trade cycle as a purely monetary phenomenon. According to him, inventory cycles result from fluctuations caused in the desired rat

Regression Analysis, Use a computer regression package, to work these two c...

Use a computer regression package, to work these two computer exercises. 2. Ozark Bottled Water Products, Inc. hired a marketing consulting firm to perform a test marketing of its

Annual and monthly premiums charged, Green Shield Insurance gives NEMO Corp...

Green Shield Insurance gives NEMO Corporation with coverage for prescriptions, dental work, and extended health services. Every subscriber uses $435 worth of dental services per ye

Operate a mixed economy, Problem 1: All economies of the world can be s...

Problem 1: All economies of the world can be said to be ‘mixed', to a greater or lesser degree, in that there is no economy where there is no state activity and no economy wher

Economic terms a managerial decision assignment, Describe and answer in eco...

Describe and answer in economic terms a managerial decision you have knowledge about (for example one that has to be made at your place of employment). Some examples of decisions a

Explain the tastes of the buyer must not alter, Tastes of the buyer must no...

Tastes of the buyer must not alter Any alteration which takes place in the taste of consumers will in all probability thwart the working of the law of demand. It frequently hap

Quality controls - importance of demand forecast, Quality and Quantity Cont...

Quality and Quantity Controls: Demand forecasting is a necessary and valuable instrument in the control of management of an organisation to provide finished goods of correct quant

Strategic reasons - reason for protection, Strategic Reasons For politi...

Strategic Reasons For political or strategic reasons, a country may not wish to be dependent upon imports and so may protect a home industry even if it is inefficient.  Many co

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd