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1)PURE Monopolist
-Single seller
-State owned or legally protected
-Example-Defence Ammunition
2) Working Monopoly
- More than 25 % sales
3) Oligopoly
- Few dominant firms
- Strong market power
- Improve position over time
4) Duopoly
- Two firm take majority demand
- Example Pepsi and Coco-Cola
1) Industrial Policy and expansion of scope of private sector
2) Intercompany investment
3) Government licensing policy
4) Import duty and market protection
5) Planning process
6) Control over banking companies
7) Credit policy of private Sector, Financial institution
8) Tax policy
9) Diversification and technological integration
 Regulation of quality of service
 Merger Policy
 Breaking up a monopoly
 Main case against a monopoly is that it makes
higher profits at the expense of a loss of allocate
efficiency.
 The monopolist will seek to extract a price from
customers above the cost of resources used in
making the product.
 Higher prices mean that consumers' needs and
wants are not being satisfied, as the product is
being under-consumed.
 Higher prices cause a loss of consumer surplus
and welfare and will disproportionately affect lower
income families.
 Prevent excess prices
 Quality of service
 Promote competition
 Monopoly power
Why monopoly is considered a market failure?

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Why monopoly is considered a market failure?

  • 1.
  • 2.
  • 3.
  • 4. 1)PURE Monopolist -Single seller -State owned or legally protected -Example-Defence Ammunition
  • 5. 2) Working Monopoly - More than 25 % sales 3) Oligopoly - Few dominant firms - Strong market power - Improve position over time
  • 6. 4) Duopoly - Two firm take majority demand - Example Pepsi and Coco-Cola
  • 7. 1) Industrial Policy and expansion of scope of private sector 2) Intercompany investment 3) Government licensing policy 4) Import duty and market protection 5) Planning process 6) Control over banking companies 7) Credit policy of private Sector, Financial institution 8) Tax policy 9) Diversification and technological integration
  • 8.
  • 9.
  • 10.
  • 11.  Regulation of quality of service  Merger Policy  Breaking up a monopoly
  • 12.  Main case against a monopoly is that it makes higher profits at the expense of a loss of allocate efficiency.  The monopolist will seek to extract a price from customers above the cost of resources used in making the product.  Higher prices mean that consumers' needs and wants are not being satisfied, as the product is being under-consumed.  Higher prices cause a loss of consumer surplus and welfare and will disproportionately affect lower income families.
  • 13.
  • 14.  Prevent excess prices  Quality of service  Promote competition  Monopoly power