Monopoly
Monopolies are when 1 firm dominates the market. While only 1 firm dominates the market, there are 4 types of monopolies. Firstly, the main characteristics of a monopoly are:
The 4 types of monopolies are:
2.Geographical
3. Technological
4. Governmental
- 1 firm
- unique product
- substantial price control
- huge entry barriers
The 4 types of monopolies are:
- Natural
- keeps the costs down with only 1 firm
2.Geographical
- based on location
- location can't support more than 1
3. Technological
- control over a certain process
- patented/ copy right
- Public Franchise - gives them the sole right
4. Governmental
- provides services not available in private industry