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MONOPOLY
Monopoly is a market structure with only a single seller of a commodity or service dealing with a large number of buyers. When a single seller faces a single buyer, that situation is known as bilateral monopoly.
The most important features of market structure are those which influence the nature of competition and price determination. The key element in this segment of market organization is the degree of seller concentration, or the number and size distributions of the sellers. There is monopoly when there is only one seller in an industry, and there is competition when there are many sellers in an industry. In cases of an intermediate number of sellers, that is, something between monopoly and competition, there can be two sellers (duopoly), a few sellers (oligopoly), or many sellers (atomistic competition).
Today the term monopoly is usually extended to include any group of firms which act together to fix prices or levels of production. Complete control of all output is not necessary to exercise monopoly power. Any combination of firms which controls at least 80 percent of an industry’s production can dictate the prices of the remaining 20 percent.
Aside from private monopolies, there are public monopolies. One example of a public monopoly in the United States is the nonprofit postal service. There is also the «natural» monopoly, which exists when it is more efficient, technically, to have a single seller.
Although the precise definition of monopoly – a market structure with only a single seller of a commodity or service – cannot be applied directly to a labor union because a union is not a seller of services, labor unions have monopolistic characteristics. For example, when a union concludes a wage settlement which sets wage rates at a level higher than that acceptable to unorganized workers, the union clearly contributes to monopolistic wage results. In effect, the price of labor (wages) is set without regard to the available supply of labor.

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1Is monopoly a market structure with only single seller of a commodity?2What are the most important features of market structure?3How many sellers are there in atomistic competition?4Where is one example of the public monopoly situated?5Why cannot a market structure with only a single seller of commodity be applied directly to a labour union?