SlideShare a Scribd company logo
MONOPOLY ?
CHARACTERISTICS
5
ONE SELLER OR
SINGLE SELLER
PRICE
MAKER
ADVERTISING
HIGH BARRIERS TO
ENTRY
UNIQUE GOODS
(NO CLOSE SUBSTITUTES)
ONE SELLER OR SINGLE
SELLER
 THERE IS ONLY ONE SELLER
OF A PRODUCT.
 NO CLOSE SUBSTITUTION.
PRODUCT: PRODUCE
ELECTRICITY
UNIQUE GOODS
(NO CLOSE SUBSTITUTES)
 CONSUMERS /BUYERS
COULD NOT FIND ANY
SUBSTITUTE FOR THE
PRODUCT.
 IF BUYERS CAN FIND ANY
SUBSTITUTE FOR
ELECTRICITY SUCH AS SOLAR
ENERGY,THEN THIS
PRODUCT IS NO MORE IN.
PRODUCT: PRODUCE
WATER
PRICE MAKER
 THE COMPANY SET THEIR
OWN PRICE.
 CONSUMER HAVE TO ACCEPT THE CHARGE
BECAUSE THEY CANNOT FIND OTHER CHEAPER
SUBSTITUTE.
HIGH BARRIERS TO ENTRY
 THERE ARE STRICTLY
BARRIERS TO THE ENTRY OF
NEW FIRM.
 BARRIERS TO ENTRY ARE
NATURAL/LEGAL
RESTRICTIONS.
 NO COMPETITION
ADVERTISING
 IF THE PRODUCT IS LUXURY
GOODS SUCH AS IMPORTED
CARS ,IT NEED SOME
ADVERTISEMENTS.
 IF THE PRODUCT IS
WATER,ELECTRIC OR PHONE
SERVICE DO NOT NEED ANY
ADVERTISEMENT.
PRODUCT:PHONE
SERVICE
THANK YOU…

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  • 2. CHARACTERISTICS 5 ONE SELLER OR SINGLE SELLER PRICE MAKER ADVERTISING HIGH BARRIERS TO ENTRY UNIQUE GOODS (NO CLOSE SUBSTITUTES)
  • 3. ONE SELLER OR SINGLE SELLER  THERE IS ONLY ONE SELLER OF A PRODUCT.  NO CLOSE SUBSTITUTION. PRODUCT: PRODUCE ELECTRICITY
  • 4. UNIQUE GOODS (NO CLOSE SUBSTITUTES)  CONSUMERS /BUYERS COULD NOT FIND ANY SUBSTITUTE FOR THE PRODUCT.  IF BUYERS CAN FIND ANY SUBSTITUTE FOR ELECTRICITY SUCH AS SOLAR ENERGY,THEN THIS PRODUCT IS NO MORE IN. PRODUCT: PRODUCE WATER
  • 5. PRICE MAKER  THE COMPANY SET THEIR OWN PRICE.  CONSUMER HAVE TO ACCEPT THE CHARGE BECAUSE THEY CANNOT FIND OTHER CHEAPER SUBSTITUTE.
  • 6. HIGH BARRIERS TO ENTRY  THERE ARE STRICTLY BARRIERS TO THE ENTRY OF NEW FIRM.  BARRIERS TO ENTRY ARE NATURAL/LEGAL RESTRICTIONS.  NO COMPETITION
  • 7. ADVERTISING  IF THE PRODUCT IS LUXURY GOODS SUCH AS IMPORTED CARS ,IT NEED SOME ADVERTISEMENTS.  IF THE PRODUCT IS WATER,ELECTRIC OR PHONE SERVICE DO NOT NEED ANY ADVERTISEMENT. PRODUCT:PHONE SERVICE