His cost of production may be rising, falling or constant. Given the demand for his product, the monopolist can select the most profitable output against this demand. If, on the other hand, the demand is less elastic, the tendency will be to raise the price and profit more by selling less. If the demand for his product is highly elastic, he can sell more by a small reduction in price. But the manner and extent to which the monopolist will be able to influence price or output will depend upon the elasticity of demand for his product. Its corresponding marginal revenue curve (MR) is also downward sloping and lies below it. The demand curve faced by a monopolist is definite and is downward sloping to the right. The demand curve for his product is, therefore, relatively stable and slopes downward to the right, given the tastes and incomes of his customers. Thus, the monopoly firm is itself an industry and the monopolist faces the industry demand curve. This means that no other firms produce a similar product. The cross elasticity of demand with every other product is very low. In the words of Salvatore, “Monopoly is the form of market organisation in which there is a single fir m selling a commodity for which there are no close substitutes.” Monopoly is a market situation in which there is only one seller of a product with barriers to entry of others. Essay on Control and Regulation of Monopoly.Essay on the Harms of Price Discrimination.Essay on the Benefits of Price Discrimination.Essay on the Conditions for Price Discrimination.Essay on the Types of Price Discrimination.Essay on the Meaning of Monopoly Price Discrimination.Essay on the Degree of Monopoly Power – Its Measure. Essay on the Sources and Types of Monopoly.Benefits of Price Discrimination and Other Details. Meaning of Monopoly Price Discrimination 6. Degree of Monopoly Power – Its Measure 5. After reading this essay you will learn about: 1. In this essay we will discuss about monopoly market.
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