How can you describe the characteristics of a monopoly?

Characteristics of a monopoly.

1. High barriers to entry. New firms find it challenging to enter into a market dominated by a monopoly firm. Hence, a monopolist faces no competition.
2. Single seller. Under a monopoly, the whole market is served by a single producer or seller with no close substitutes.
3. Price maker. The monopoly enjoys market power and can decide on the price of its products. The lack of competition under monopoly spares the firm of price pressures, thus enabling the monopolist to set prices to his advantage.
4. Price discrimination. The firm can change the price and quantity of its goods and services where need be. For example, where the price is high, the firm might be willing to sell a large number of goods while at a low price, the quantity the firm is ready to sell can be fewer products.