Types of Monopoly in Economics
Here we understand about the types of Monopoly in Economics.
TYPES OF MONOPOLY IN ECONOMICS
- Natural Monopolies: A natural Monopoly exists when the supply of commodity is limited by nature and a single firm acquires complete control over it. for example, the diamond mines of De Beers Company in South Africa.
- Legal Monopolies: When the law prevents duplication or imitation of a particular product, a legal monopoly comes into existence, namely, patents and copyrights.
- Private Monopolies and Public Monopolies: A private monopoly is owned and operated by private individuals or organizations for the purpose of profit, that is profit maximisation is only or primary objective. A public or government monopoly is run not only for profit but also for economic welfare of the community. It is also call as social monopoly or welfare monopoly.
- Simple Monopolies and Discriminating Monopolies: Simple Monopolies are those which charge single or uniform price for their products to all their customers. Discriminating monopolies, on the other side, are those which charge different prices for the same commodity to different customers.
- Perfect and Imperfect Monopoly or Confident and Pessimist Monopoly: A monopolist is perfect and confident if he feels completely secure and does not apprehend and potential competition. A perfect monopolist is sure of his position and is confident of his profits. Imperfect monopoly, on other side, is one which is threatened by the entry of new competitors or organized public reaction or state intervention.
Types of Monopoly
Private and Public Monopolies
Simple Monopolies and Discriminating Monopolies
Perfect and Imperfect Monopoly or Confident and Pessimist Monopoly
Economics- Monopoly- Types of Monopoly.
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