MONOPOLY

A monopoly exists when there is no competition between suppliers with suppliers , industries  and companies .in other words , a monopoly exists when a specific person or company is the only supplier of a particular commodity to the public. Monopoly exists  because of different barriers to entry or target to a market that prevent competition.

 

CHARACTERISTICS OF MONOPOLY:

·       There must be only one seller of the product in the market so that demand will be high.

·       Consumers have no other substitutes.

·       Must be large no of barriers for a new company to target the market.

·       Price is fixed as per monopoly.

·       Product should be unique.

Ex:- when the company Kodak was founded in the year of 1888, cameras offered by this company is the only product in the market . Kodak has no competitors at that time and it was generating more of revenue by selling the photographic flim.