Question

Name and explain the types of monopoly.

Explain the types of Monopoly.

Write short answer for the following question :

Types of monopoly

Write a short note on the following:

Types of monopoly

Answer 1

Following are some of the types of monopoly:

1. Private monopoly: When an individual or private body controls a monopoly firm it is known as private monopoly. For example, Tata Group.
2. Public monopoly: When the production is solely owned, controlled and operated by the Government, it is known as public monopoly. It is usually welfare-oriented. For example, Indian Railways.
3. Legal monopoly: This monopoly emerges on account of legal provisions like patents, trade mark, copyrights etc. The law forbids the potential competitors to imitate the design or form of the product registered under given branded names. For example, Amul products.
4. Natural monopoly: A monopoly created on the basis of natural conditions like climate, rainfall, specific location etc. is known as natural monopoly. For example, wheat from Punjab.
5. Simple monopoly: In simple monopoly, seller or a firm charges a uniform price for its product to all the buyers.
6. Discriminating monopoly: In a discriminating monopoly, a firm charges different prices to different buyers for the same product. For example, doctor charges different fees to different patients.
7. Voluntary monopoly: To avoid cutthroat competition, some monopolists voluntarily come together and form a group of monopolists. This facilitates them to maximise the profit. For example, Organisation of Petroleum Exporting Countries (OPEC).