Monopoly
In monopoly market, there is only
one seller for any particular things and there is no alternative product or
thing available in the market. In this market, one firm is equal to the whole
industry so the demand curve is same & have a stable demand. In this market,
supplier knows the customer interest and income level. In this market, the
cross elasticity of product is zero.
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| Monopoly |
Average revenue (AR) is the demand
curve in monopoly market because it is a rectangular hyperbola. In this market,
a supplier control one thing either production or price.
If supplier select price “P” so
selling quantity “Q” will be decided by customer. If a seller selects the “Q”
level of production then “OP” price decide by the consumer.
