question archive What are the characteristics or assumptions of the monopoly model in economics?

What are the characteristics or assumptions of the monopoly model in economics?

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What are the characteristics or assumptions of the monopoly model in economics?

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The monopoly model is when there is one seller in the market. There are high barriers to entry and price discrimination normally occurs. The product is normally unique and difficult to produce. Price discrimination happens when companies charge different customers different prices for the same products or services. An example of a monopoly would be the local gas company.