The document explains the concept of monopoly, characterized by a single seller, lack of close substitutes, and barriers to entry. It outlines different types of monopolies, including private, public, absolute, discriminative, legal, natural, and technological monopolies, along with their advantages and disadvantages. Examples, such as the Indian Railways, illustrate the application of monopolies in real markets.

1. MONOPOLY

2. MEMBERS
Rucheer Goregaonkar 23
Sanket Gawali 37
Paresh Prabhulkar 19
Prajakta Mandhare 16
Manish Tiwari 51
Atul Palve 34

3. INTRODUCTION
COMBINATION OF TWO WORDS:
MONO ONE
MONOPOLY
POLY CONTROL
• Refers to a market situation in which there is only one seller of a commodity
• Power to set the price
• Monopolist may be a king without a crown.

4. “ONE
MAN
RULE”

5. DEFINATION
Monopoly is a market situation in which there is a single seller. There are no close substitutes of
the commodity it produces, there are barriers to entry”. -Koutsoyiannis
Features of Monopoly
Single seller
No close substitute
Unique product
Price maker
Entry barrier
Eg. In Saudi Arabia the government has sole control over the oil industry
By branding, Copyrights, patents there can be no creation Perfect substitutes

6. EXISTENCE OF MONOPOLY
 True monopoly generally exists in government controlled markets
 E.g. Indian Railways
 Monopoly in private business is rare
 Private firms who have considerable market shares may enjoy
monopoly
 E.g. Microsoft, Intel, Google,

7. TYPES OF MONOPOLY
 PRIVATE MONOPOLY: -
The monopoly firm owned and operate by private
individuals is called the private monopoly. Their main
motive is to make profit.
 PUBLIC MONOPOLY: -
The monopoly firm owned and operated by public or state
government is called public monopoly Their main motive is to
provide welfare to the public.
 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.

8.  Discriminative monopoly:
When a monopoly firm changes different prices for the same goods
or services to different consumers it is known as discriminative
monopoly.
 Legal monopoly:
When a firms enjoys rights like trade mark, copy right, patent right, etc.
then it is known as legal monopoly. Such monopoly rights are approved by
the government.
 Natural monopoly:
When a firms enjoys monopoly right due to natural factors like location
reputation earned etc, it is called as natural monopoly.
 Technological monopoly:
When a firm enjoys monopoly power due to technical superiority
over other products in the market, then it is called as technological
monopoly.

9. ADVANTAGES AND DISADVANTAGES
Advantages
 Monopoly avoids duplication and hence
avoids wastage of resources
 A monopoly enjoys economies of scale of
product or services in market
 Sources of revenue for the government as
government gets revenue from of taxation
 Earning of huge profit led monopoly to
invest in R&D and provide us new product
Disadvantages
 Poor level of services
 Consumers may be charged high price for
low quality of goods
 Lack of competition may lead to low
quality and out dated goods and services
 Loss in R&D may force them to revert the
profit from consumer

10. APPLICATION OF MONOPOLY
 Example Indian railway
 Monopoly in its segment
 Government , is the only seller
 No close substitute for railway in market
 Barriers to entry in market(capital, requirement, technology)