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

cost pricing and marginal cost pricing method, Discuss the full cost prici...

Discuss the full cost pricing and marginal cost pricing method. Explain how the two  methods differ from each other.

Isoquants, #question.meaning of isoquants and its types

#question.meaning of isoquants and its types

Classical view on unemployment, CLASSICAL VIEW ON UNEMPLOYMENT The cla...

CLASSICAL VIEW ON UNEMPLOYMENT The classical economists as we observed in Unit 1 of this course, were of the view that full employment prevailed  in  the  economy  all the tim

Explain price elasticity and total revenue, Q. Explain Price elasticity and...

Q. Explain Price elasticity and total revenue? Given the relationship between price elasticity and marginal revenue of demand in Eq. II, the decision-makers can simply know whe

Factor combination in the long run, Factor combination in the long run ...

Factor combination in the long run In the long run it is possible to vary all factors of production. The firm is therefore restricted in its activities by the law of diminish

Public sector borrowing requirement (psbr), PUBLIC SECTOR BORROWING REQUIRE...

PUBLIC SECTOR BORROWING REQUIREMENT (PSBR) Public Sector Borrowing Requirement (PSBR) is the amount which the government needs to borrow in any one year to finance an excess e

What is consumer demand , Consumer Demand is how much of something that co...

Consumer Demand is how much of something that consumers are wanting. A company requires to know the consumer demand so they know how much of a product to build.

Explain supernormal equilibrium, Q. Explain Supernormal Equilibrium? S...

Q. Explain Supernormal Equilibrium? Supernormal Equilibrium: E is the point of stable equilibrium as MC = MR and MC cuts the MR from below.   Figure: Supernormal Equ

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