Explain any two features of Monopoly Market.

1.	Explain any two features of Monopoly Market.
Answer» (i) There is only one single seller in the market so that seller can influence the market price on its own. (ii) There ate no close substitutes so that there is no competition in the market. (iii) There are barriers to entry of new firms so that the seller, if getting above normal profits, can continue to get abnormal profit. Detailed Answer: (i) Single seller: A monopoly market has a single seller of the commodity. This single person has complete control over the output of the commodity. So, in this sense it is price maker also. (ii) No close substitutes: All the units of a commodity are similar and there are no close substitutes of that commodity.

Answer»

(i) There is only one single seller in the market so that seller can influence the market price on its own.

(ii) There ate no close substitutes so that there is no competition in the market.

(iii) There are barriers to entry of new firms so that the seller, if getting above normal profits, can continue to get abnormal profit.

Detailed Answer:

(i) Single seller: A monopoly market has a single seller of the commodity. This single person has complete control over the output of the commodity. So, in this sense it is price maker also.

(ii) No close substitutes: All the units of a commodity are similar and there are no close substitutes of that commodity.

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