What is Monopoly ? Meaning as well as Concept
The term monopoly is derived from Greek words 'mono' which agency unmarried as well as 'poly' which agency seller. So, monopoly is a marketplace structure, where at that topographic point exclusively a unmarried seller producing a production having no closed substitute.
This unmarried seller may live inwards the shape of an private possessor or a unmarried partnership or a Joint Stock Company. Such a unmarried describe solid inwards marketplace is called monopolist. Monopolist is cost maker as well as has a command over the marketplace render of goods. But it does non hateful that he tin mail away laid both cost as well as output level. H5N1 monopolist tin mail away exercise either of the ii things i.e. cost or output. It agency he tin mail away ready 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 as well as locomote out because of around restrictions.
- There is a consummate negation of competition.
- Monopolist is a cost maker.
- Since at that topographic point is a unmarried firm, the describe solid as well as manufacture are i as well as same i.e. describe solid coincides the industry.
- Monopoly describe solid faces downward sloping ask curve. It agency he tin mail away sell to a greater extent than at lower cost as well as vice versa. Therefore, elasticity of ask component is real of import for him.
Classification / Kinds / Types of Monopoly
1. Perfect Monopoly
It is likewise called equally absolute monopoly. In this case, at that topographic point is exclusively a unmarried seller of production having no closed substitute; non fifty-fifty remote one. There is absolutely nil degree of competition. Such monopoly is practically real rare.
2. Imperfect Monopoly
It is likewise called equally 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 convey a remote substitute. So, at that topographic point is fearfulness of contest to around 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 as well as 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 turn a profit oriented.
4. Public Monopoly
When production is owned, controlled as well as managed past times government, it is called populace monopoly. It is welfare as well as service oriented. So, it is likewise called equally 'Welfare Monopoly' e.g. Railways, Defence, etc.
5. Simple Monopoly
Simple monopoly describe solid charges a uniform cost or unmarried cost to all the customers. He operates inwards a unmarried market.
6. Discriminating Monopoly
Such a monopoly describe 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 describe organisation human relationship of merchandise marks, patents, re-create rights, statutory rule of authorities etc., it is called legal monopoly. Music manufacture is an representative of legal monopoly.
8. Natural Monopoly
It emerges equally a final result of natural advantages similar skilful location, abundant mineral resources, etc. e.g. Gulf countries are having monopoly inwards unsmooth crude exploration activities because of enough of natural crude resources.
9. Technological Monopoly
It emerges equally a final result of economies of large scale production, role of working capital missive of the alphabet goods, novel production methods, etc. E.g. engineering goods industry, automobile industry, software industry, etc.
10. Joint Monopoly
A publish of describe organisation firms laid about monopoly seat through amalgamation, cartels, syndicates, etc, it becomes articulation monopoly. e.g. Actually, pizza making describe solid as well as burger making describe 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 mail away relish monopoly ability inwards market.
