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When can a small company be the monopoly ?Principles of Microecononics

When can a small company be the monopoly ?Principles of Microecononics

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A small company can be monopoly if the company exists in the business where it is the first of its kind. Then the company will be in position to have command over the price. Product of the company will be valuable to the customer because of the uncommon nature and hence it will have the inelastic demand. Supply and demand are the major principles of the microeconomies. So, the small company will have the supply capacity to meet the demand and enjoy the price premium structure.

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