Types of Monopoly

Types of Monopoly

1. Private monopoly

2. Public monopoly

3. Absolute monopoly

4. Imperfect monopoly

5. Simple or single monopoly

6. Legal monopoly

7. Technological monopoly

1. Private monopoly

The monopoly firm owned and operate by private individual is called private monopoly. The main motive is to make profit

2. Public monopoly

The monopoly firm owned and operated by public or state government is called as public monopoly. It is also known as social monopoly. The entire operation is controlled either by central or state government. Their main motive is to provide welfare to the public

3. Absolute monopoly

It is a type of monopoly, where a single seller controls the entire supply of market without facing competition. It is also known as pure monopoly. His product does not have been even any remote substitute also.

4. Imperfect monopoly

It is type of monopoly in which a single seller controls the entire supply of the market which does not have a close substitute. But there might be remote substitute for the product available in the market.

5. Simple or single monopoly

It is a type of monopoly in which a single seller controls the entire market, by selling the commodity at a single price for the entire consumer. There is no price discrimination in the market

6. Legal monopoly

When a firm enjoy rights like trademark, copyright, patent right, etc. then it is known as legal monopoly. Such monopoly rights are approved by government

7. Technological monopoly

When a firm enjoys monopoly power due to technical superiority over other product in market, then it is called as technological monopoly.