Single Monopoly Market Meaning
A market place structure in which there is a lone vendor or seller is called a monopoly. The conditions concealed in this lone line definition, however, has to be definitely affirmed. A monopolistic competition market structure requires that there is a lone manufacturer of a particular good; no other good works as an alternative for this good; and for this situation to continue over time, adequate constraints are necessitated to be in place to stop any other enterprise from entering the market place and to start selling the good. In order to scrutinise the difference in the equilibrium of a monopoly market as compared to other market structures, we need to presume that all other markets remain accurately competitive. Below are the few points that a vendor of a monopoly market should have :
- All the customers are price takers
- That the market places of the inputs used in the manufacturing of this good are perfectly competitive both from the supply and demand perspective
- If the above conditions are contented, then we can define the situation as one of monopoly in a single commodity market
Also know: What is Oligopoly?
Features of Monopoly Market
- Maximize profit- This is the main and important reason why a company wants to be in a monopoly market. The company strives to generate and secure not only revenue but also maximize the profit.
- Price maker- The monopoly players have the authority to fix and plan the price of goods. In this market, the firm has the sole right to influence the market rate and have the pricing power. Here, the price is modified according to the demand and supply of goods in the market.
- High competition- A monopoly market has high barriers for players to enter. Sometimes, high competition makes monopoly market players extremely difficult to make profits.
Explore link: Important Question for Non-Competitive Market
A commodity market can be defined as a virtual or a physical marketplace for purchasing, trading and selling primary products or raw materials. Today, in total, there are about fifty vital controlling commodity markets across the world. These markets supervise, control, and monitor the global rates of these commodities.
Types of Commodity Market
- Hard Commodity- These commodities that are derived naturally is known as hard commodities. Example: Oil, Gold, and Coal, etc.
- Soft Commodity- All animal livestock or agricultural products come under soft commodities. Example: Sugar, Soybean, Maize, and Wheat, etc.
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