2. MONOPOLY
A Monopoly is a form of market structure in which a
single seller of a firm has control over the entire
market supply .This sole seller in the market is called
‘‘MONOPOLIST’’.
When a product is produced and sold under conditions
of monopoly the monopolist gains at the expense of
consumers, who have to pay a price higher than the
marginal cost of production.
3. SUPPLY CURVE
A supply curve is a graphic representation of the relationship
between product price and quantity of the product that a
seller is willing and able to supply.
In the words of Baumol ‘‘The supply curve is strictly speaking a
concept which is usually relevant only for the case of perfect
competition. The reason for this lies in its definition –the
supply curve is designed to answer question of the firm, how
much will firm ‘A’ supply if it encounters a price which is fixed
at P dollars'. But such a question is most relevant to the
behavior of firms that actually deal with prices over whose
determination they exercise no influence’’
