![]() ![]() The market is characterised by restrictions to entry to other firms and the absence of competition. In case of this type of market prices are set by the producers, and the buyer's purchases do not have alternative sources hence must buy from the single seller. Global economy is comprised of different types of markets such as the perfectly competitive market for sectors like retail, fruits, and vegetable and oligopoly market like in telecommunication industry monopoly market in which only one seller is permitted to sell the specific product in the economy. Back to: ECONOMIC ANALYSIS & MONETARY POLICY Why is a Captive Market Important? This leads to higher prices with limited diversification for consumers. Consumers do not have a choice but to buy the presented supply. This scenario results in high demand for the little supply available. ![]() Update Table of Contents What is a Captive Market? Why is a Captive Market Important? Examples of Captive Market Academic Research for Captive Market What is a Captive Market?Ī captive market is one in which there are suppliers who control the supply of specific goods.
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