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Monopoly: The Four Types Of Competition In Free Market

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Monopoly refers to a single seller providing no competition which allows the supplier has a strong say in pricing power. Monopoly also where a single group or organization owns most or all the market for a particular service or product. There are four main types of competition in free market which are perfect competition, oligopoly competition, monopolistic and monopoly.
A monopoly is where there is one seller that takes control over the supply ad price of a service or product with many buyers. This allows the seller to control the price to whatever they desire to match or compete with other sellers. Monopoly is a market structure where one company sells a good or service where the entry is blocked single company has considerable control over …show more content…

In a monopoly market, there is only one seller. The seller controls the price and supply of a product or service. A monopolistic can also control the market because there is only one service in the market and will get a lot of buyers. In a monopoly market, the products are unique and do not have similar substitutes. All the units of a product are similar and there are no alternative to that commodity in the firm. The firm are controlling over the market by offering a product that is not same with other. The firm may use specialized information like trademark and copyright in order to establish legal authority over the production of some goods and services.
Normally, monopoly situation in a market can continue only when other company does not enter into the industry. In a monopoly market, they have no others competitor because barriers of enter are very strong. It would be prevent and discourage to enter this market to be a competitor. Therefore, a monopoly presents barriers to prevent potential competitors from entering the market. The barriers may even be legal in that the firm to take benefit of copyrights, tariffs and trade restrictions and others. If want continue the monopoly market should not be no entry for new …show more content…

At the quantity of 5 units of cable TV would lead to negative MR (MRs characteristic. In a monopoly market only has one seller running the business in entire market. Therefore, there is no competition with others. A monopolistic also needs to ensure no barriers to entry of other companies. the concept of market structure is central to both economics and marketing. Besides, there are difference feature in these four common types of market structure which is perfect competition, monopolistic competition, oligopoly and monopoly. Perfect Competition which is many sellers of a standardized product, Monopolistic Competition which has many sellers of a differentiated product, Oligopoly has few sellers of a standardized or a differentiated product, and Monopoly which is a single seller of a product for which there is no close

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