The main types of monopolies and their characteristics

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In modern life, the different kinds of monopolies.By the term "monopoly" refers to those enterprises and organizations, the scale of activities of which covers a large part of the market in the country.They receive priority right to the pricing of certain types of goods and services, are able to inhibit or attach smaller companies.

can identify specific types of monopolies, grouping them on the basis of a specific classification.For example, depending on the scale of the impact on the economy is an absolute and pure monopoly.The latter implies the existence of a large enterprise, which is focused on a particular industry.In this case, the emergence of competitors in the market is practically impossible, and the monopolist fully controls the movement of manufactured product on the market and the level of prices.For absolute monopoly is characterized by government regulation, all the processes occurring in the market, are at the mercy of state bodies, which establish basic principles.

There are certain types of monopolies, based on the criteria of their causes.To those should include artificial and natural and legal monopoly.The latter have a "talking" called and shaped by the current legislation.Among them are widespread patent system - awarded to the author of an invention, the ownership or the issuance of permits for a particular activity.It includes the development of a legal monopoly and registration of a particular trademark, which later becomes known around the world and is a certain guarantee of the product.

natural monopolies are those companies and organizations that in their activities using any rare materials that are inaccessible to other manufacturers or specific technology.In our country, there are only about half a thousand of such enterprises among the four thousand various monopolies.There are such kinds of natural monopolies as:

  • companies involved in the manufacturing process of the rare types of metals, special varieties of grapes and other items that are not easy prey for manufacturers;
  • firms and organizations, with the support of the government, for example, engaged in the production of military equipment, construction of roads and housing estates.

natural monopolies have a tremendous impact on the economy, as they guide the process of pricing in the market.Due to the large volume of production reduced costs for raw materials, thereby reducing its cost.This creates serious problems for companies engaged in production of similar products, but in smaller amounts, because they have to find ways to reduce prices in order to maintain its position in the market.

There are companies who want to reach a large part of the market, worked hard to expand the scale of production and capture a specific area.Such species are referred to as artificial monopolies and suggest specific goals and receive benefits through the implementation of the developed measures.They do everything to win most of the market and monitor the activities of competitors.For this purpose, it creates a special monopoly associations, whose members have the privilege of entering the market and the implementation of marketing activities.The rest of us do not get that opportunity.Artificial monopolies are making every effort to develop its own equipment and technology, so their products are in great demand and receives only positive feedback from consumer groups.

describe what Monopoly and its types, I want to draw a conclusion about the role of such large-scale companies in the economy.In this case, it can be said about the dual nature of the effect, because on the one hand contribute to the improvement of the monopoly of production activities, on the other hand the complete absence of competition in the market has a negative impact on pricing.In addition, young entrepreneurs is extremely difficult to start a business and take its own niche in the market.