MONOPOLY

The word monopoly has been derived from

the combination of two words i.e., ‘Mono’
and ‘Poly’. Mono refers to a single and
poly to control.
monopoly refers to a market situation in which
there is only one seller of a commodity.Their
offerings are not perfect substitutes, such as
Visa and MasterCard. Other examples of
monopolistic competition include retail stores,
restaurants, and hair salons.
The Pure Monopoly
A pure monopoly is a single seller in a
market or sector with high barriers to entry
such as significant startup costs whose
product has no substitutes.
Example:
NATURAL MONOPOLY
monopoly that exists typically due to the high start-up
costs or powerful economies of scale of conducting a
business in a specific industry which can result in
significant barriers to entry for potential competitors.
A company with a natural monopoly might be the only
provider of a product or service in an industry or
geographic location. Natural monopolies can arise in
industries that require unique raw materials, technology,
or similar factors to operate.
MONOPOLYISTIC COMPETITION
Multiple sellers in an industry sector with similar
substitutes are defined as having monopolistic
competition. Barriers to entry are low, and the competing
companies differentiate themselves through pricing and
marketing efforts.
Example:
Vs
PUBLIC MONOPOLY
Public monopolies provide essential services and goods,
such as the utility industry as only one company commonl
supplies energy or water to a region. The monopoly is
allowed and heavily regulated by government
municipalities and rates and rate increases are controlled.
Ex:
LEGAL MONOPOLY
Legal monopoly refers to a company that is
operating as a monopoly under a government
mandate. A legal monopoly offers a specific
product or service at a regulated price. It can
either be independently run and government
regulated, or both government-run and
government regulated.
OLIGOPOLY
An oligopoly is a market characterized by a
small number of firms who realize they are
interdependent in their pricing and output
policies. The number of firms is small enough
to give each firm some market