In order to comprehend the ontological construction below, please refer to the respective posts for all notions in italic.
The monopolistic market reveals a single producer and a single buyer of commodities. It is the simplest market structure conceivable, where both the supply and the demand are priority of solitary entrepreneurs – as monopoly and monopsony respectively. Monopolistic enterprise pursues the maximum feasible profit on the market, for it is a pure form of profit making activity. Every product is fashioned according to the requirements of its constant productivity, and a commodity is demanded for a price, which is equal to the minimal acceptable contribution to the consumption of its last part according to the requirements of diminishing need.
Historical Backdrop
• ARISTOTLE Politics: monopoly.
• ALFRED MARSHALL Principles of Economics: compromise benefit.
• JOHN BATES CLARK The Problem of Monopoly: monopoly.
