What is a monopoly and what is required

Monopoly is at the opposite end of the spectrum of market models from consummate(a) rivalry. A monopoly firm has no rivals. It is the unaccompanied firm in its industry. thither ar no close substitutes for the good or service a monopoly produces. Not only does a monopoly firm have the market to itself, only it also need non worry ab away other firms entering. In the case of monopoly, entry by potential rivals is prohibitively difficult. A monopoly does not take the market price as given it determines its own price.It selects from its requirement curve the price that corresponds to the quantity the firm has hosen to produce in fix up to earn the maximum profit possible. In assuming thither is ace firm in a market, we assume there argon no other firms producing goods or services that could be considered part of the same market as that of the monopoly firm. The result is a model that gives us important insights into the disposition of the choices of firms and their impact on the economy. There are some Advantages of a Monopoly. The Monopolies avoids duplications and thusly wastage of resources.Enjoys economics of scale, due to it being the only supplier of the product or service n the market, makes many profits and be practice sessiond for query and development to maintain their status as a monopoly. They also use price discrimination to benefit the weaker economic section of society. To avoid competition, they posterior afford to invest in the latest technology and machinery. There are some Disadvantages of a Monopoly. Monopolies have poor levels of service, there is no consumer sovereignty, the consumers are charged high prices for such low quality goods, and lack of competition could lead to low quality goods, as well as out dated goods.First off, any arket type can see super conventionality profits in the short-run. What is more important is what happens in the end. Pure monopolies are not the only monopoly that can make profits. Natural Monopol y or a price discriminating monopoly can make profits as well. The only difference between them is why they are monopolies to begin with. Oligopolies are not monopolies, although they do tend to make above normal profits. Monopolistic competition does not yield these types of profits in the end. Economic profit goes to zero here in the end because there is a lack of barriers here to stay fresh competition from entering.