What are Monopoly Markets? Characteristics
Monopoly market is the market where we can see only one supplier who is offering a good or service which has no substitutes.
Characteristics of a monopoly market
- Only one supplier
- Price is decided by that company>
- Strict entry barriers
- Company will make abnormal profits in short and long run
- Company will not advertise
- The good or service doesn't have substitutes
Formation of a monopoly
- By law
- By competition
- By forming cartels
- By the ownership of scare resources.