Types of monopoly
- Imperfect (simple) monopoly. This is the type of monopoly where there is a single producer or seller of a commodity which has no close substitutes that is, the commodity can be substituted to a certain degree
- Pure (Absolute/Perfecta) monopoly. This is the type of monopoly where a firm produces a commodity that has no substitutes at all.
- Statutory Monopoly. This is the form of monopoly set up the act of the parliament to provide a certain service to the public for example NSSF, URA etc.
- Collective (Collusive). This is the form of monopoly where firms producing similar products merge so as to monopolize certain economic activities.
- Bilateral Monopoly. This is the form of monopoly where there is one buyer facing a single seller of a commodity.
- Spatial monopoly. This is the form of monopoly arising from long distance between rival producers of a given commodity.
- Natural monopoly. This is the form of monopoly which exists because of nature where the firm controls the sole ownership of a certain raw material for example River Nile being the only source of hydroelectric power in Uganda.
- Discriminating monopoly. This is the form of monopoly where the seller has the ability to charge different prices to different customers for similar units of the commodity sold for example theaters, air transport, stadiums etc.
CATEGORIES General
TAGS Dr. Bbosa Science
