ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A monopolist is considered to be a price maker, and can set the price of the product that it sells. However, the monopolist is constrained by consumer willingness and ability to purchase the good, also called demand.

Detailed explanation-2: -Price makers are found in imperfectly competitive markets such as a monopoly or oligopoly market.

Detailed explanation-3: -A monopoly describes a market situation where one company owns all the market share and can control prices and output.

Detailed explanation-4: -What is Monopoly. Definition: A market structure characterized by a single seller, selling a unique product in the market. In a monopoly market, the seller faces no competition, as he is the sole seller of goods with no close substitute.

Detailed explanation-5: -Price setting. Oligopolies are price setters rather than prices takers. High barriers to entry and exit. The most important barriers are government licenses, economies of scale, patents, access to expensive and complex technology, and strategic actions by incumbent firms designed to discourage or destroy nascent firms.