In a capitalistic society, a monopoly is when one company oversees all aspects of the manufacturer and distribution. For instance, with the Standard Oil monopoly, the features were control of the pipelines, refineries, transportation, manufacturing sources, and distribution for oil, owning over 90 percent of the market.
· The Word Mono Means Single Poly means seller
· The first and foremost important feature is there will not be any close substitute
· There is no free entry and exit because of some restrictions.
· There is a complete negation of competition.
· Monopolist is a price maker.
· Since there is a single firm, the firm and industry are one and same i.e. firm coincides the industry.
· Monopoly firm faces downward sloping demand curve. It means he can sell more at lower price and vice versa. Therefore, elasticity of demand factor is very important for him.
Kinds / Types / Classification of Monopoly ↓
1. Perfect MonopolyIt is also called as absolute monopoly. In this case, there is only a single seller of product having no close substitute; not even remote one. There is absolutely zero level of competition. Such monopoly is practically very rare.
2. Imperfect MonopolyIt is also called as relative monopoly or simple or limited monopoly. It refers to a single seller market having no close substitute. It means in this market, a product may have a remote substitute. So, there is fear of competition to some extent e.g. Mobile (Cellphone) telcom industry (e.g. vodaphone) is having competition from fixed landline phone service industry (e.g. BSNL).
3. Private MonopolyWhen production is owned, controlled and managed by the individual, or private body or private organization, it is called private monopoly. e.g. Tata, Reliance, Bajaj, etc. groups in India. Such type of monopoly is profit oriented.
4. Public MonopolyWhen production is owned, controlled and managed by government, it is called public monopoly. It is welfare and service oriented. So, it is also called as 'Welfare Monopoly' e.g. Railways, Defence, etc.
5. Simple MonopolySimple monopoly firm charges a uniform price or single price to all the customers. He operates in a single market.
6. Discriminating MonopolySuch a monopoly firm charges different price to different customers for the same product. It prevails in more than one market.
7. Legal MonopolyWhen monopoly exists on account of trade marks, patents, copy rights, statutory regulation of government etc., it is called legal monopoly. Music industry is an example of legal monopoly.
8. Natural MonopolyIt emerges as a result of natural advantages like good location, abundant mineral resources, etc. e.g. Gulf countries are having monopoly in crude oil exploration activities because of plenty of natural oil resources.
9. Technological MonopolyIt emerges as a result of economies of large scale production, use of capital goods, new production methods, etc. E.g. engineering goods industry, automobile industry, software industry, etc.
10. Joint MonopolyA number of business firms acquire monopoly position through amalgamation, cartels, syndicates, etc, it becomes joint monopoly. e.g. Actually, Pizza making firm and burger making firm are competitors of each other in fast food industry. But when they combine their business, that leads to reduction in competition. So they can enjoy monopoly power in market.
Some of the major characteristics of monopoly capitalism are; the world-wide proliferation of multinational corporations that come to hold monopolies of duopolies with other corporations over certain markets; intensifying economic crisis often fitting the Marxist theory of crisis of overproduction; and the financialisation of capitalism.
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capitalism.
yes
Yes
Yes, Belgium's economy is a form of capitalism.
The Market Economy is another name for Capitalism.
The Market Economy is another name for Capitalism.
The term "market economy" is just a synonym for capitalism.
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capitalism.
Capitalism
CApitalism
yes
CApitalism, Coorporate
capitalism
A Market Economy
Yes