Perfect Competition vs Monopoly (In Detail)

Microeconomics, Monopoly, Perfect Competition

One of the very important Perfect and Imperfect markets namely Perfect competition and Monopoly has always been studied in every foundation course of Economics. These are the distinguishing features of both the markets. Perfectly Competitive Market – Perfect...

Sources of Monopoly Power

Microeconomics, Monopoly

We all know that pure monopoly is very rare in today rapidly growing and progressing businesses. Every now and then we have competitors around us so we barely see such companies who can rule the whole market without having any barriers or alternative.  Yet there are...

The effect of Shifts in Demand in Monopoly

Microeconomics, Monopoly

A Monopolistic market has no Supply curve The reason behind it the NO SUPPLY CURVE is that the monopolist output decision depends not only on Marginal cost but also on the Shape of Demand Curve. Note that the shape of demand curve do not tell us Price and Quantity...

How does a Monopolist finds the correct Price and Output in Practice ?

Microeconomics, Monopoly, Monopoly Output Decision

When we are talking about an Imperfect competitive firm who is a price taker and has enough market power to have its Products price above the Marginal cost, than we also need to find out what would be that correct price and output that a monopolist must use to have...

Monopoly Cost and Output Decision

Microeconomics, Monopoly, Monopoly Output Decision

When firms have some control over the price of their product, we call it an IMPERFECT COMPETITION. This also means that the firm has MARKET POWER; ability to raise price without losing all of the quantity demanded for their product. Thus, Market Power + Imperfect...

Monopoly’s Output Decision

Microeconomics, Monopoly, Monopoly Output Decision

The output decisions in case of monopoly differ in respects of the time period or the length of time span through the monopoly firm is operating. There are two kinds of time periods; i. Short Run: It is a time period in which one of the variable is fixed i.e could not...

Economic Inefficiencies of Monopoly

Microeconomics, Monopoly, Monopoly Inefficiency

The economic inefficiencies of monopoly can also be regarded as demerits or disadvantages of monopoly. Monopoly is definitely a harmful element of an economy as a single firm rules over the economy and sets the prices of commodity, which has no substitute in the...

Monopoly: What you really need to know about Monopolists?

Microeconomics, Monopoly

We use this word of monopoly commonly in our lives. Sometimes we are referring a person having a monopoly power and other times speaking in the language of business and Economics, Firms having monopoly power. So what is this Monopoly Power ? They say that Monopolists...