Monopoly is the addition to two words, i.e. ‘Mono’ + ‘Poly’, i.e. single seller in the market. Being the single seller in on the supply of the commodity. Impure monopoly even no close substitute of In product is available in the market. In monopoly, no distinction arises between ‘firm’ and ‘industry’ i.e. firm is industry and industry is firm.

Definitions:- 

1. According to Mc councell, “Pure monopoly exists when a single firm is the sole producer of a product for which there are no close substitutes 

Features of Monopoly: The main features of monopoly are as follows:- 

1. Single seller and large Number of buyers: Monopoly market consists single seller of the product but the number of buyers stands very large. No buyer can influence the price of the product due to his large number in the market. 

2. No close substitutes: Monopoly firm produces such commodity which has no close substitute and as a result the cross elasticity of demand becomes zero. 

3. Monopolist as a price- maker: Being the single seller in the market. The monopolist firm in itself a price- maker A monopolist firm can determine both price and quantity but not simultaneously (i.e either price or quantity at a particular time.) 

4. No Entry of new firm : The entry of new firm into the industry is strictly prohibited. There is no competitor of monopoly firm in the market. 

5. Demand curve Negatively sloped : Monopolist demand curve in negatively sloped and marginal revenue (MR) is lesion than average revenue (AR). The slope of demand curve depends on elasticity of demand.