Monopoly

Monopoly

Monopoly in the European Union Law

Concept of Monopoly provided by the “Glossary of terms used in EU competition policy” (Antitrust and control of concentrations, published in 2002): Market situation with a single supplier (monopolist) who — due to the absence of competition — holds an extreme form of market power. It is tantamount to the existence of a dominant position. Under monopoly, output is normally lower and price higher than under competitive conditions. A monopolist may also be deemed to earn supra-normal profits (that is, profits that exceed the normal remuner-ation of the capital). A similar situation on the demand side of the market, which is with a single buyer only, is called monopsony.


Posted

in

,

by

Tags:

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *