Monopoly is always in an advantageous position to fix the price of a commodity in a way it likes another exploit the society. It is very essential that the society should be saved from exploitation. This can be done only when the state interferes and for this some measures are always taken by the state. Some of important measures are: [...]
Get the answer of: What is Monopoly? 'Mono' means one and 'poly' means seller. Thus monopoly refers to a market situation in which there is only one seller of a particular product. This means that the firm itself is the industry and the firm's product has no close substitute. The monopolist is not bothered about the reaction of rival firms [...]
The following points highlight the seven limitations of price-fixing power of a monopolist. The limitations are: 1. Potential Competition 2. Foreign Competitors 3. Existence of Substitutes 4. Fear of Public Agitation or Consumer’s Opposition 5. Government's Interference and Legislations 6. Time Elasticity and Future Expansion of the Business and few Others. Limitation # 1. Potential Competition: The monopolist may fear [...]