Imperfect Competition - Monopoly

Monopoly : 
Meaning and Definition :
The term monopoly is derived from the Greek word ‘Mono’ which means single and ‘poly’ which means seller. Monopoly is a market in which there is only one seller who controls the entire market supply for a product which has no close substitute.
According to E. H. Chamberlin, “Monopoly refers to a single firm which has control over the supply of a product which has no close substitute.”

Following are the main features of monopoly market :
1) Single seller :
In monopoly, there is no competition as there is only one single producer or seller of the product. But, the number of buyers is large.
2) No close substitute :
There are no close substitutes for the product of the monopolist. Therefore, the buyers have no choice. They have to either buy the product from the monopolist or go without it. The cross elasticity of demand for his product is either zero or negative.
3) Barriers to entry :
Entry of the rivals is restricted due to legal, natural, technological barriers which do not allow the competitors to enter the market.
4) Complete control over the market supply:
The monopolist has complete hold over the market. He is the sole producer or seller of the product.
5) Price maker :
A monopolist can fix the price of his own product as he controls the whole market supply. Monopolist is a price maker.
6) Price discrimination :
Monopolist being a price maker, he can charge different prices to different consumers for the same product, on the basis of time, place etc. Thus, price discrimination is an important feature of monopoly market. For example, students and senior citizens are provided railway tickets at concessional rates.
7) No distinction between firm and industry: 
A monopolist is the sole seller and producer of the product. A monopoly firm itself is an industry. Types of Monopoly include Private Monopoly,Public monopoly, Legal monopoly, Natural monopoly, Simple monopoly, Discriminating monopoly, Voluntary monopoly.