What are the assumptions of pure monopoly?

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What are the assumptions of pure monopoly?

2007-01-10 03:14:15 · 2 answers · asked by mfaiuk 1 in Education & Reference ➔ Higher Education (University +)

2 answers

That you offer the only product/service of this type and that there are no alternatives. E.G. There are plenty of alternatives to piza - Indian, chinese, etc.

Even though you may supply the only service of this type, there must be sufficient demand. If demand exists, then price will be higher than with a market that has free competition. Even olygopalies have to pretend that they are not price fixing.

Have a look at Applied Economics - Parkin and King. for a better definition.

Luck

2007-01-10 03:26:45 · answer #1 · answered by Alice S 6 · 0⤊ 0⤋

That you get Â£200 when you pass GO

2007-01-10 11:22:18 · answer #2 · answered by Great Eskape 5 · 0⤊ 0⤋