Contemporary views on the Theory of Monopoly:
The modern concepts on the Theory of Monopoly says that if a monopoly is not safeguarded from competitions by restrictions on government levels, it not only subject to possible competitions but is prone to exploit the consumers and earn huge profits.
General assumptions about the monopoly model:
Similarity in the price levels for all buyers
Necessity of multiple purchasers
Necessity for asymmetric data0
Process of price fixing in monopoly:
A monopolist is a price maker as opposed to price taker in perfect competition. The price is a single one and is fixed at a point where the Marginal Cost (MC) is equivalent to the Marginal Revenue (MR).
Natural Monopoly:
The concept of Natural Monopoly gives birth to a condition where long-term and descending marginal cost characterizes the production all through the pertinent output range. Under such circumstance, a laissez-faire policy results in the rise of single sellers.