Define the term monopoly and outline its characteristics.
Monopoly is a market structure where a single firm controls market's output and market share.
Monopoly's characteristics are the following:There is only one firm in the industry Changes in the firm's output cause changes in the priceFirm produces unique goods and servicesThere are significant barriers to entry the industryNeither allocative nor productive efficiency will be achievedExamples:Microsoft Local Utilities
ID
Related Economics IB answers
All answers ▸Describe the impact of the tightening of the monetary policy by the central bank on consumer spending.
What are the different assumptions of a perfectly competitive market and a market with monopolistic competition?
How to explain a demand and supply graph for a certain good or service
What does it take to make a 7 in HL Economics?