Define monopoly and characteristic?

Monopoly refers to a market. Where there in a single of the for a product and there is no close substitute of the commodity that is offered by the sole supplier to the buyers. The firm constitution the entire industry. There are barriers to only for the firms into the works.

A monopoly has full control over price determination. Following are its main characteristics.

1.                 Single seller:

In monopoly there is a single seller in the market. A monopolist controls the whole supply of the product.

2.                 No close substitutive:

There is no substitute for the product in a market, produced by the monopolist. 

3.                 In elastic demand:

The demand for the product of monopolist is usually less-Elastic. Price may increase but demands remain constant.

4.                 No entry of firms:

No new firm can enter into the market. It may be due to legal restriction or technological advancement.

5.                 Negative sloped demand curve:

The demand curve under monopoly is negatively sloped. Which means that monopolist can increase the sale by lowering the price.