A market where this is only one seller of a particular good or service
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Name 4 characteristics of Monopolies
Only 1 seller in the market. Many buyers. Firms enjoy abnormal profits. Seller controls prices and is price maker.
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Advantages of Monopoly
Avoid duplication and waste of resources. Enjoys EoS and benefits can be passed to consumers. Profits can be used towards R&D. May use price discrimination
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Disadvantages of Monopoly
Poor level of service. No consumer sovereignty. Consumers may be charged high prices for low quality. Lack of competition may lead to low quality and out dated
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Definition of Oligopoly
Market dominated by a few large firms
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Characteristics of and Oligopoly
Few sellers. Interdependence between firms. Product differentiation. Barriers to entry. Collusion may occur. More non-price competition.
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