MONOPOLIES

Monopolies

Monopoly

Monopoly is characterized by an absence of competition, which often results in high prices and inferior products.

Types of monopolies

Monopolies can be distinguish as natural monopolies, trusts, cartels and mergers between companies, among others.

Natural monopoly

The natural monopoly is created by order of the consumer. The natural monopoly cannot control prices because faces five limits:

Pure Monopoly

Pure monopoly, one company in an industry, does not get in the real economy, except when it is an activity undertaken by a public concession.

Monopsony

When a single buyer and many sellers. When there is only one buyer of an input, we ...