Monopoly of Intel

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Project Report MONOPOLY INTEL CORPORATION

SUBMITTED BY:

ANKIT MITTAL GSMS BATCH 2010-2012

MONOPOLY
What is Monopoly?
The term monopoly means an absolute power of a firm to produce and sell a product that has no close substitute. In other words, a monopolized market is one in which there is only one seller of a product having no close substitute. The cross elasticity of demand for a monopoly product is either zero or negative. In other words, a monopolized industry is a single – firm industry.

Characteristics of Monopoly:
1. There is only single seller in the market. This means that the demand curve faced by the monopolist is the downward – sloping demand curve for the market 2. For a firm to continue as a monopoly in the long – run, there must be factors that prevent the entry of other firms. 3. The product of the monopolist must be highly differentiated from other goods. There must be no close substitutes.

Market structure characteristics of Monopoly:
Number and size distribution of sellers Number and size distribution of buyers Product differentiation Conditions of entry and exit Single seller Unspecified No close substitutes Entry prohibited or difficult

Causes and kinds of monopoly:
The emergence and survival of a monopoly firm is attributed to the factors which prevent the entry of other firms into the industry and eliminate the existing ones. The main barriers to entry are: 1. Legal restrictions: Some monopolies are created by law in the public interest. Most of the erstwhile monopolies in the public utility sector of India, e.g., postal, telegraph and telegram services, generation and distribution of electricity, Indian Railways, Indian Airlines and State Roadways, etc., were public monopolies. Entry to these industries was prevented by law. Now most of these industries are being gradually opened to the private sector. Also, the state may create monopolies in the private sector also, through license or patent, provided they show the

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