Definition of Monopoly
In language, Monopoly is derived from the Greek language, the Monos and Polein. Monos means alone, while Polien means the seller. If the two words are combined, I explain in general terms that the monopoly is "selling yourself" which means that an individual or organization / institution into a single seller (market share, on the sale or supply of goods or services).
Monopoly is a market control carried out by a person or a company or entity to dominate the market supply (sale of goods and or services on the market) addressed to its customers.
A monopolistic activity in economic activity should have the characteristics, here are some traits in Monopoli activities:
1. There is only one seller. In a monopoly, there is only one seller of goods or services that controls the overall production of certain commodities. Therefore, the overall market served by a single company, and for practical purposes, the company equated with industry;
2. The power of the seller or the manufacturer to determine harga.Kemampuan to give effect to the terms and conditions of the buying and selling prices of the products that are set by the company (the price is not determined by the market as it does in a perfectly competitive market). Although market forces monopolt Heigh, but remains constrained by the demands of the market. The consequences of monopoly is the increase in price will result in partial loss of consumer;
3. There is no substitute for the nearest or similar goods (close substitute). This is because the company manufactures certain commodities, and goods and services are bought and sold the goods or services which are still rare;
4. No or very few other companies can enter the market because of the many obstacles or barriers of corporate excellence;
5. Discrimination prices: pricing to the consumer that is different from price to other consumers in the different market segments of goods and or services of the same reasons that are not related to production costs.