1.

Explain the meaning of monopoly and state its various definitions.

Answer»

Monopoly:

  • A market structure where in there is only one seller and numerous buyers is called monopoly. .
  • ‘Perfect Market’ and ‘Monopoly’ are two completely opposite theories. Just like perfect market, monopoly is also an imaginary concept. The monopoly observed is actually imperfect monopoly.
  • Monopoly has originated from the Greek words, ‘Monos’ which means ‘Single’ and ‘Polein’ means ‘Seller’. So, the term ‘Monopoly’ means a market having only one seller.

Definition:

  • According to Prof. Chamberlin, “When the product supply is controlled only by a single enterprise, it is Monopoly.”
  • According to Prof. Stigler, “Only one enterprise is the seller of the goods or products.”


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