Price-Fixing Power of a Monopolist: 7 Limitations | Economics
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 [...]