LS10- Monopoly

Question 1

Monopoly

Answer 1

• A market with a single seller of a good
• Competition and Markets Authority (CMA) are empowered to investigate a merger if combined firm have >25% of market share

Question 2

Assumptions of a monopoly

Answer 2

• There is a single seller of a good
• There are no substitutes for the good, either actual or potential
• There are barriers to entry into and exit from the market