ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Monopoly is the other extreme of the market structure spectrum, with a single firm. Monopolies have monopoly power, or the ability to change the price of the good.

Detailed explanation-2: -Pure Monopoly This firm is the sole producer of a product, and there are no close substitutes. Because there are no alternatives, the firm has the highest level of market power. Hence, monopolists often reduce output, increase prices and earn more profit. Entry or exit is blocked in a pure monopoly.

Detailed explanation-3: -The correct answer is d. A monopoly market system is a structure that has entry barriers. The market usually has entry barriers because it is characterized by having one seller of a particular good. No other firm produces that specific product; thus, the product being sold has no replacements.

Detailed explanation-4: -A monopolistic market is a market structure with the characteristics of a pure monopoly. A monopoly exists when one supplier provides a particular good or service to many consumers.

Detailed explanation-5: -These barriers include: economies of scale that lead to natural monopoly; control of a physical resource; legal restrictions on competition; patent, trademark and copyright protection; and practices to intimidate the competition like predatory pricing.