Features and Examples of a Monopoly Market

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Features and Examples of a Monopoly Market
Features and Examples of a Monopoly Market

We have detail information of Features and Examples of a Monopoly Market.

Features and Examples of a Monopoly Market

Meaning

Monopoly is defined as the market structure where there is a single seller of a product having no close substitutes. The word monopoly has been derived from the Greek words ‘mono’ and ‘poly’, which means ‘single’ and ‘seller’ respectively.

What are the Features or Characteristics of monopoly?

Following are the features or characteristics of monopoly

1. A single seller but a large number of buyers

2. No close substitutes

3. Barriers to entry

4. Firm and industry

5. Independent price policy

6. Price discrimination

7. Profit maximization

Types of Monopoly

Following are the types of monopoly:

a. Neutral Monopoly

When one producer can produce significant amount that is ample to serve the market. water, electricity, and gas distribution are often examples of natural monopolies.

b. Government Monopoly

A government monopoly occurs when the government grants exclusive rights to produce and sell a particular good or service. For example distribution of Petrolium, electricity, etc.

c. Geographic Monopoly

When only one company has power to serve the market due to limited competition. Such situation is known as Geographic monopoly.

d. Technological Monopoly

Monopoly is technological market where there is no competiton. Example of technological monopoly is Microsoft’s operating system monopoly with Windows.

Other Important Links:

a. Oligopoly Market with example: CLICK HERE

Frequently Asked Questions.

a. What is monopoly market and examples?

The market in which there is a single seller with no substitute and has barriers to entry into the industry is monopoly market. One of the best example of monopoly is google search engine which hold the most market share.

b. What is an example of a monopoly market in Nepal?

= Selling of petroleum products is the monopoly market in Nepal. It is sold by Nepal Oil Corporation (NOC) only.