There are No Close Substitutes - There will be a competition if other firms are selling similar kinds of products. This condition has to be met to eliminate any competition.
That seller could be either an individual, a joint-stock company, or a firm of partners. There is a Single Producer - The product must have a single producer or seller. There are three essential conditions to be met to categorize a market as a monopoly market. There are buyers and sellers in a market which determines the size of the market.Ī monopoly market is a form of market where the whole supply of a product is controlled by a single seller. It facilitates the exchange of goods and services, and it can be a physical place like a retail store where people meet face-to-face or a virtual one, i.e., online e-commerce websites. One can define the market as a place where two or more parties meet for economic exchange. It does not face much cross elasticity of demand with all other products. No other firm produces a similar product, and the product is unique. The seller does not face any competition in such a market structure as he or she is the sole seller of that particular product. In a monopoly market structure, a single firm or a group of firms can combine to gain control over the supply of any product. Thus a monopoly market is the one where a firm is the sole seller of a product without any close substitutes. If you break up the word “Monopoly”, you get “Mono” which means single or solo, and “Poly” which means “seller”.
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