Characteristics of Monopoly:

The main characteristic of monopoly can be classified into three:

a. One firm in the industry: A pure monopoly is an industry consisting of only one firm.The monopoly firm's demand curve is therefore the industry demand curve and it slopes downward - i.e.it must lower price to sell a greater amount of its product.

b.Barriers to entry:In order for a firm to maintain its monopoly position, barriers exist to prevent the entry of new firm. Such barriers including control over the factors of production, legal protection, economies of scale and consumer loyalty are the main sources of monopoly power.

c. Absence of supply curve: When deciding how much to produce and what price to change, the monopolist simultaneously considers demand and cost. The monopolist does not have a supply curve independent of demand conditions contrasts to what obtains under perfect competition.