Abstract
A monopoly exists when supply of a particular good or service is in the hands of a single supplier, either a single firm (pure monopoly) or a group of firms who jointly coordinate their marketing plans (a cartel). By controlling supply a monopolist can influence price. However a monopolist lacks complete market power because of an inability to control demand. A monopolist can therefore either fix price and allow demand to determine output, or fix output and allow demand to determine price.
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© 1993 Barry Harrison
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Harrison, B. (1993). Monopoly. In: Introductory Economics Course Companion. Palgrave, London. https://doi.org/10.1007/978-1-349-13004-7_11
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DOI: https://doi.org/10.1007/978-1-349-13004-7_11
Publisher Name: Palgrave, London
Print ISBN: 978-0-333-57913-8
Online ISBN: 978-1-349-13004-7
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