Abstract:

The mechanism of free competition is not comprehensive in a market economy. There are industries in which one firm is a supplier of a product that does not have close substitutes or competitors on the market, thus such industry or enterprise are monopolies in the market place.
Unlike free competition, the monopolist sets not only the quantity of the products offered, but also the price, choosing a point on the curve of the sectoral demand. (Sharkey, 1982)