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

Case let 2, is Indian companies running a risk by not giving attention to c...

is Indian companies running a risk by not giving attention to cost cutting?

Currency swaps, Currency Swaps If the currency of one country is not c...

Currency Swaps If the currency of one country is not convertible, the central banks o f the two countries can exchange their currencies, and the country with the non-convertib

What is the equilibrium in the labor market, What is the equilibrium in the...

What is the equilibrium in the labor market? Explain briefly. Equilibrium in the Labor Market a. The market labor of demand curve is the horizontal total of the individual l

Economic growth-harrod domar theory, Harrod Domar Theory A basic princi...

Harrod Domar Theory A basic principle that has been stressed by both Harrod and Domar in their growth models and which has been incorporated in all modern growth theories is th

Relationship between mr and elasticity, Suppose that the price elasticity o...

Suppose that the price elasticity of demand for cereal is -0.75 and the cross-price elasticity of demand between cereal and the price of milk is -0.9. If the price of milk rises by

Short run equilibrium of a firm under monopoly, The short run equilibrium o...

The short run equilibrium of monopolist is displayed below in figure. Figure: Abnormal Profit under Monopoly AR is the average revenue curve, MR is marginal revenue cu

Determine a specific price of demand of product, Determine a Specific Price...

Determine a Specific Price of demand of product A proclamation concerning the demand of a product without mentioning its price is worthless. For instance, to state that demand

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