Monopoly - is the opposite of a competitive market

Monopoly - it is the direct opposite of the competitive market.It is characterized by the presence of only one seller and manufacturer, which occupies all the space in the market of a particular product or service.The reverse phenomenon - a monopsony, where the authority has only one buyer in the market of a particular product or service.

perfect monopoly - these are the conditions in the market in which the product is produced by a monopolist unikalizirovan and has no substitute products, it is impossible to reach the market for several reasons, with the result that the manufacturer holds all the power in their hands.In addition, the monopolist can significantly affect the pricing, but in this case its power is still limited.

Getting profits in this market is very high.That's why the industry is attracting more and more outsiders, but also struggle with monopolists such fierce competition?How do they manage to contain the onslaught and continue to dominate?To do this, consider the types of monopolies:

1. Natural.It occurs mainly in the sectors that provide vital community resources, such as electricity, water, gas, transportation (such as urban transport), etc.

In this case, provide the necessary resources market is cheaper, so production becomes more efficient.

There is a register of natural monopolies, which collects information about a single economic entities involved.

2. Monopoly under the organization's control over scarce natural resources, or knowledge.If a company has special resources (oil, for example) or knowledge (patents), it can dominate the market due to the fact that it is - only their owner.

3. State monopoly - a situation in the market, which is due to natural monopoly (eg, rail).It is also a fact resulting due to the fact that in any branch of the influx of non-governmental organizations, other types of prohibited (for example, in the field of export, import).

4. Bilateral monopoly - a market situation where the buyer-producer monopsonist opposes monopolies (for example, when providing a service to the state monopoly - the only buyer of this type of service).

There is such a thing as monopolistic competition.It is a form of market structure, in which a considerable amount of sellers or manufacturers supply to the market are similar but not exactly the same products that are characterized by quality, design or any other signs.Goods that are produced under conditions of monopolistic competition, constitute one branch and one market (eg, toothpaste, sportswear, non-alcoholic beverages).

Thus, a monopoly - a state in which power belongs to the seller or manufacturer.But if there are many buyers in the market, this situation is deplorable.Often monopoly reduces output and raises prices for goods.