Monopoly Monopoly-market in which there is only one seller

Types of monopolies

• Natural monopoly arises due to objective reasons. It reflects a situation where the demand for this product or service best met by one or more firms. At its core - especially production technologies and customer service. This competition is not possible or desirable for entry into the industry in other companies, the cost of manufactured products increase. The reason is the economy of scale from - the more product produced, the lower its cost. One example is energy, telephone services, telecommunications, pipelines and so on. D. In these areas there are a limited number, if not the only national company, so, naturally, they occupy a monopoly position in the market. The elimination or downsizing of monopolies uneconomical. The highest efficiency of industry provided only if there is one producer or distributor (distributor).