What is Monopoly ? Meaning together with Concept
The term monopoly is derived from Greek words 'mono' which agency unmarried together with 'poly' which agency seller. So, monopoly is a marketplace seat structure, where at that spot exclusively a unmarried seller producing a production having no closed substitute.
This unmarried seller may live inward the shape of an private possessor or a unmarried partnership or a Joint Stock Company. Such a unmarried theatre inward marketplace seat is called monopolist. Monopolist is toll maker together with has a command over the marketplace seat furnish of goods. But it does non hateful that he tin plough over notice laid both toll together with output level. Influenza A virus subtype H5N1 monopolist tin plough over notice practise either of the 2 things i.e. toll or output. It agency he tin plough over notice ready either toll or output merely non both at a time.
Characteristics / Features of Monopoly
Following are the features or characteristics of Monopoly :-
- A unmarried seller has consummate command over the furnish of the commodity.
- There are no closed substitutes for the product.
- There is no gratis entry together with move out because of closed to restrictions.
- There is a consummate negation of competition.
- Monopolist is a toll maker.
- Since at that spot is a unmarried firm, the theatre together with manufacture are i together with same i.e. theatre coincides the industry.
- Monopoly theatre faces downward sloping need curve. It agency he tin plough over notice sell to a greater extent than at lower toll together with vice versa. Therefore, elasticity of need constituent is rattling of import for him.
Classification / Kinds / Types of Monopoly
1. Perfect Monopoly
It is too called every bit absolute monopoly. In this case, at that spot is exclusively a unmarried seller of production having no closed substitute; non fifty-fifty remote one. There is absolutely zilch grade of competition. Such monopoly is practically rattling rare.
2. Imperfect Monopoly
It is too called every bit relative monopoly or uncomplicated or express monopoly. It refers to a unmarried seller marketplace seat having no closed substitute. It agency inward this market, a production may accept a remote substitute. So, at that spot is fearfulness of contest to closed to extent e.g. Mobile (Cellphone) telcom manufacture (e.g. vodaphone) is having contest from fixed landline telephone service manufacture (e.g. BSNL).
3. Private Monopoly
When production is owned, controlled together with managed past times the individual, or private trunk or private organization, it is called private monopoly. e.g. Tata, Reliance, Bajaj, etc. groups inward India. Such type of monopoly is lucre oriented.
4. Public Monopoly
When production is owned, controlled together with managed past times government, it is called populace monopoly. It is welfare together with service oriented. So, it is too called every bit 'Welfare Monopoly' e.g. Railways, Defence, etc.
5. Simple Monopoly
Simple monopoly theatre charges a uniform toll or unmarried toll to all the customers. He operates inward a unmarried market.
6. Discriminating Monopoly
Such a monopoly theatre charges unlike toll to unlike customers for the same product. It prevails inward to a greater extent than than i market.
7. Legal Monopoly
When monopoly exists on trace of piece of occupation organisation human relationship of merchandise marks, patents, re-create rights, statutory rule of authorities etc., it is called legal monopoly. Music manufacture is an instance of legal monopoly.
8. Natural Monopoly
It emerges every bit a number of natural advantages similar skilful location, abundant mineral resources, etc. e.g. Gulf countries are having monopoly inward unsmooth stone oil exploration activities because of enough of natural stone oil resources.
9. Technological Monopoly
It emerges every bit a number of economies of large scale production, purpose of upper-case missive of the alphabet goods, novel production methods, etc. E.g. technology scientific discipline goods industry, automobile industry, software industry, etc.
10. Joint Monopoly
A number of trace of piece of occupation organisation firms start out monopoly seat through amalgamation, cartels, syndicates, etc, it becomes articulation monopoly. e.g. Actually, pizza making theatre together with burger making theatre are competitors of each other inward fast nutrient industry. But when they combine their business, that leads to reduction inward competition. So they tin plough over notice bask monopoly ability inward market.
