Charectiestic of a monopoly market
1. Single seller: In a monopoly market, there is only one seller of a particular product or service, giving them complete control over the market.
2. High barriers to entry: Monopolies often have significant barriers to entry, such as high startup costs, government regulations, or exclusive access to resources, making it difficult for new competitors to enter the market.
3. Price maker: The monopoly seller has the power to set prices for their products or services, because there are no competing sellers to limit their pricing decisions.
4. Limited consumer choice: In a monopoly market, consumers have limited options for purchasing the product or service, as there is only one seller available.
5. Lack of competition: Monopolies do not face competition from other firms, which can result in higher prices, lower quality products, and decreased innovation.
6. Potential for market power abuse: Because monopolies have control over the market, there is a risk of them abusing their power by engaging in anti-competitive practices, such as price fixing or restricting consumer choice.
7. Limited consumer surplus: Monopolies can lead to a decrease in consumer surplus, as they are able to charge higher prices and offer lower-quality products without fear of losing customers to competitors.