Assumption and different types of 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, on firm is equal to the whole
industry so the demand curve is same & 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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| Assumption and different types of monopoly |
Assumption
–
ü
There
is only one seller in the market
ü
No
alternative product available in the market
ü
Seller
want to earn more profit by low level of cost
ü
Full
competition in the factor market or raw supply market
ü
One
price for all customer
ü
Price
is already given for consumer
Different
types of monopoly
ü If
government provide special right to someone for innovation or research
ü
If
a firm get low level of cost and set low price
ü
Full
control over particular raw material supply
ü
If
government set some regulation
ü
Government
services like post office
ü
Government
provide license for special production and also save them from out side
competition.
