Get premium membership and access questions with answers, video lessons as well as revision papers.
There are many types of monopoly and the following four are the most common ones:
1. Monopoly on Inputs
One of the most important bases for monopoly lies in the control of inputs.
Example:
Prior to the Second World War, Aluminium Company of America (Alcoa) owned almost every sources of bauxite, a necessary ingredient in the production of aluminium, in the US.
2. Natural Monopoly
Natural monopoly arises from huge economies of scale. It comes into place when the MES is sufficiently large to satisfy the market demand. It is called natural monopoly in the sense that it is the natural result of market forces.
Example: Most public utilities.
3. Market Franchise
A market franchise is actually a contract entered into by a governmental organization and a business firm providing the firm with an exclusive right to market a good or services within its jurisdiction.
Example: Oakland Raiders has the franchise granted by the National Football League for operating a football team in the city of Oakland.
4. Technical Superiority
A firm whose technical expertise vastly exceeds that of potential competitors can maintain a monopoly position.
Example: Intel in computer chip making.
Wilfykil answered the question on March 20, 2019 at 11:38
- Discuss on output and revenue in competitive markets(Solved)
Discuss on output and revenue in competitive markets
Date posted: March 20, 2019. Answers (1)
- Explain the Realism of Perfect Competition(Solved)
Explain the Realism of Perfect Competition
Date posted: March 20, 2019. Answers (1)
- Give the disadvantages of Perfect Competition(Solved)
Give the disadvantages of Perfect Competition
Date posted: March 20, 2019. Answers (1)
- On Equilibrium of the Firm,what are the assumptions in Choice of Optimal Combination of Factors of Production
(Solved)
On Equilibrium of the Firm,what are the assumptions in Choice of Optimal Combination of Factors of Production
Date posted: March 20, 2019. Answers (1)
- Which are the determinants of income elasticity?(Solved)
Which are the determinants of income elasticity?
Date posted: March 20, 2019. Answers (1)
- Give the Applications of indifference curve analysis(Solved)
Give the Applications of indifference curve analysis
Date posted: March 20, 2019. Answers (1)
- Explain the Revealed Preference Hypothesis(Solved)
Explain the Revealed Preference Hypothesis
Date posted: March 20, 2019. Answers (1)
- Explain the indifference-curves theory Assumptions(Solved)
Explain the indifference-curves theory Assumptions
Date posted: March 20, 2019. Answers (1)
- Which are the Weaknesses of the Cardinal Utility Theory?(Solved)
Which are the Weaknesses of the Cardinal Utility Theory?
Date posted: March 20, 2019. Answers (1)
- State and explain the Cardinal Utility Theory Assumptions(Solved)
State and explain the Cardinal Utility Theory Assumptions
Date posted: March 20, 2019. Answers (1)
- Elaborate on The Utility Function(Solved)
Elaborate on The Utility Function
Date posted: March 20, 2019. Answers (1)
- Discuss the Theory of Consumer Behavior(Solved)
Discuss the Theory of Consumer Behavior
Date posted: March 20, 2019. Answers (1)
- Show the behavior of the marginal Rate of substitution(Solved)
Show the behavior of the marginal Rate of substitution
Date posted: March 20, 2019. Answers (1)
- Discuss on Roles, Generality, and Limitation of Economic Theory(Solved)
Discuss on Roles, Generality, and Limitation of Economic Theory
Date posted: March 20, 2019. Answers (1)
- Discuss the Basic Analytical Framework of Modern Economics(Solved)
Discuss the Basic Analytical Framework of Modern Economics
Date posted: March 20, 2019. Answers (1)
- How relevant are the microeconomics models to the Real World?(Solved)
How relevant are the microeconomics models to the Real World?
Date posted: March 20, 2019. Answers (1)
- The choice of relevant microeconomics variables is essential for building a purposeful microeconomics model. State and explain the variables(Solved)
The choice of relevant microeconomics variables is essential for building a purposeful microeconomics model. State and explain the variables
Date posted: March 20, 2019. Answers (1)
- Which are the Steps in the construction of microeconomics models?(Solved)
Which are the Steps in the construction of microeconomics models?
Date posted: March 20, 2019. Answers (1)