What is Monopoly ? Meaning in addition to Concept
The term monopoly is derived from Greek words 'mono' which agency unmarried in addition to 'poly' which agency seller. So, monopoly is a marketplace structure, where at that topographic point alone a unmarried seller producing a production having no closed substitute.
This unmarried seller may live inwards the cast of an private possessor or a unmarried partnership or a Joint Stock Company. Such a unmarried draw of piece of job solid inwards marketplace is called monopolist. Monopolist is cost maker in addition to has a command over the marketplace render of goods. But it does non hateful that he tin laid both cost in addition to output level. Influenza A virus subtype H5N1 monopolist tin do either of the 2 things i.e. cost or output. It agency he tin cook either cost or output only 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 render of the commodity.
- There are no closed substitutes for the product.
- There is no costless entry in addition to larn out because of about restrictions.
- There is a consummate negation of competition.
- Monopolist is a cost maker.
- Since at that topographic point is a unmarried firm, the draw of piece of job solid in addition to manufacture are i in addition to same i.e. draw of piece of job solid coincides the industry.
- Monopoly draw of piece of job solid faces downward sloping need curve. It agency he tin sell to a greater extent than at lower cost in addition to vice versa. Therefore, elasticity of need element is really 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 topographic point is alone a unmarried seller of production having no closed substitute; non fifty-fifty remote one. There is absolutely cipher grade of competition. Such monopoly is practically really rare.
2. Imperfect Monopoly
It is too called every bit relative monopoly or uncomplicated or express monopoly. It refers to a unmarried seller marketplace having no closed substitute. It agency inwards this market, a production may accept a remote substitute. So, at that topographic point is fearfulness of contest to about 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 in addition to managed past times the individual, or private trunk or private organization, it is called private monopoly. e.g. Tata, Reliance, Bajaj, etc. groups inwards India. Such type of monopoly is net oriented.
4. Public Monopoly
When production is owned, controlled in addition to managed past times government, it is called world monopoly. It is welfare in addition to service oriented. So, it is too called every bit 'Welfare Monopoly' e.g. Railways, Defence, etc.
5. Simple Monopoly
Simple monopoly draw of piece of job solid charges a uniform cost or unmarried cost to all the customers. He operates inwards a unmarried market.
6. Discriminating Monopoly
Such a monopoly draw of piece of job solid charges dissimilar cost to dissimilar customers for the same product. It prevails inwards to a greater extent than than i market.
7. Legal Monopoly
When monopoly exists on draw of piece of job organisation human relationship of merchandise marks, patents, re-create rights, statutory rule of regime etc., it is called legal monopoly. Music manufacture is an representative of legal monopoly.
8. Natural Monopoly
It emerges every bit a consequence of natural advantages similar practiced location, abundant mineral resources, etc. e.g. Gulf countries are having monopoly inwards unsmooth crude oil exploration activities because of enough of natural crude oil resources.
9. Technological Monopoly
It emerges every bit a consequence of economies of large scale production, role of working capital missive of the alphabet goods, novel production methods, etc. E.g. applied scientific discipline goods industry, automobile industry, software industry, etc.
10. Joint Monopoly
A release of draw of piece of job organisation firms larn monopoly seat through amalgamation, cartels, syndicates, etc, it becomes articulation monopoly. e.g. Actually, pizza making draw of piece of job solid in addition to burger making draw of piece of job solid are competitors of each other inwards fast nutrient industry. But when they combine their business, that leads to reduction inwards competition. So they tin bask monopoly ability inwards market.
Comments