Types of Monopoly

Monopoly is a market in which a single seller controls the entire supply of a commodity. The different types of monopoly are as follows:

Private monopoly:
The monopoly firm owned and operate by private individuals is called the private monopoly. Their main motive is to make profit.
Public monopoly:
The monopoly firm owned and operated by public or state government is called public monopoly. It is also known as social monopoly. The entire operation is controlled either by central or state government. Their main motive is to provide welfare to the public.
Absolute monopoly:
It is a type of monopoly, where a single seller controls the entire supply of market without facing competition. It is also known as pure monopoly. His product does not have even any remote substitute also.
Imperfect monopoly:
It is a type of monopoly in which a single seller controls the entire supply of the market which does not have a close substitute. But there might be remote substitute for the product available in the market.
Simple or single monopoly:
It is a type of monopoly in which a single seller controls the entire market, by selling the commodity at a single price for all the consumer. There is no price discrimination in the market.
Discriminative monopoly:
When a monopoly firm changes different prices for the same goods or services to different consumers it is known as discriminative monopoly.
Legal monopoly:
When a firms enjoys rights like trade mark, copy right, patent right, etc. then it is known as legal monopoly. Such monopoly rights are approved by the government.
Natural monopoly:
When a firms enjoys monopoly right due to natural factors like location reputation earned etc, it is called as natural monopoly. Natural talent, skill of the producer also makes him to enjoy this right.
Technological monopoly:
When a firm enjoys monopoly power due to technical superiority over other products in the market, then it is called as technological monopoly. For example products produced by L & T, Godrej etc. are technological monopoly.

So by explaining technological monopoly and other monopolies we have finished with the full explanation of different types of monopoly.

Types of Monopoly

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