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MONOPOLY
PRESENTED BY : JITENDER
MONOPOLY
โ€ข A Monopoly is a Greek word, mono means โ€œ single โ€œ
and poly means โ€œ to sell โ€œ.
โ€ข A Monopoly is a market structure in which there is
only one seller or producer of the product .
โ€ข Example โ€“ Boeing aircraft company .
CHARACTERISTICS OF MONOPOLY
โ€ข Profit maximizer
โ€ข Price maker
โ€ข High barriers to entry
โ€ข Single supplier/ seller
BARRIERS TO ENTRY
โ€ข Natural Barriers โ€“ Firm has unique ability to produce what
other firms canโ€™t duplicate .
โ€ข Technological Barriers โ€“ Size of Market support only 1 firm
โ€ข Sociological Barriers โ€“ Entry is prevented by custom or tradition
โ€ข Government Barriers โ€“ Government policies also affect entry of
new firms
SHORT RUN :-
SUPERNORMAL PROFIT
NORMAL PROFIT
MINIMUM LOSS
LONG RUN
SUPERNORMAL PROFIT
THANK YOU

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