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State and explain the types of Monopoly

State and explain the types of Monopoly

Answers

Wilfred
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

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