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Monopoly Is a Market Structure

Monopoly Is a Market Structure

A monopoly is a type of market in which one seller or one industry completely monopolizes the market or type of Market structure.

Introduction To Monopoly

In this, the manufacturer sells a product that no other manufacturer or producer makes or that manufacturer has a monopoly in the market. Monopoly is generally discouraged in the market because monopoly prevents competition.  Reduces or eliminates the rate of substitution for consumers.

Law and Limitation

In many countries, including the United States, antitrust laws have been enacted to limit monopolies, the reason for which is that a single business or a single manufacturer exercises control over a market by exercising a monopoly over it.  Can’t do it. Controlling like this will exploit consumers.

Understanding Monopoly

Monopoly is actually such a business, its characteristic is that it does not allow competition in the market, and the products it produces will found in only one place in the market and that will the same producer as its substitute.  will not in the market. Once a monopoly is established in the market, it affects the price charged in the market and thus by price fluctuation it can double the competitors’ stay in the market and cause problems for them.  Firms control the entire supply chain from production to sales by vertical integration method and by horizontal integration method they buy competing companies in the market and thereby monopolize the market.  Monopolies usually take advantage of economies of scale. They also charge arbitrary prices.

Monopoly
I think it’s wrong that only one company makes the game Monopoly.(Steven Wright) Read More

Types of This Type of Market

 1. Pure monopoly

This type of market in which a single individual controls the market or dominates the market for a particular product or sector. Such market type is called a pure monopoly. As of 2022, Microsoft Corporation’s desktop Windows software.  had a monopoly but still holds a 75 percent of this  type of Market. In fact, Microsoft Corporation was the first pure monopoly company to monopolize a personal computer operating system.  Similarly, when new mobile phones came out, Nokia mobiles had a monopolized on the market. These are some examples of pure monopoly.

2.Monopoly Competition

Monopolistic competition occurs when many people in the same industry sell the same product. There is a greater choice for the customer and barriers are low as a result. They compete with each other by pricing and marketing their products, for example, Surf Excel and Bonus Surf both have the same function but with their advertising, they attract customers, sometimes the same.  The company has marketed its same product under many names. If we look at our market, it seems that Unilever has a monopoly on our market.  However, in the category of monopolistic competition, small industries like restaurants, salons, etc. Generally, they compete in monopolistic conditions.

3.Natural monopoly

 It is a type of market in which the manufacturer owns the patent right to manufacture his product using unique raw material technology.  He researches his product and develops it, so he owns the patent right, usually pharmaceutical companies or surgical instrument companies are part of this type of Market.

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4.Public Monopolies

Such patent provide certain primary product like utility industry electricity or water supply industry etc. Government dictate of municipalities regulates such industries. These regulations control rates and rate hikes.

Regulation of This Type of Market

Open markets are praise for dire monopolistic practices and for customer protection, in addition to competition law. The Sherman Antitrust Act was passed in 1890 by the U.S. Congress to control “trusts” and prevent them from sustain patent, the forgoer of patent.  Cooperatives or groups of companies that worked together to fix prices.  The act ended the patent of many companies, including the Standard Oil Company and the American Tobacco Company.

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