Various types of monopoly are as under -
Natural Monopoly - Such a monopoly gets created
by the grace of god.
The places having abundant natural resources
achieve this kind of a monopoly.
For example, oil is found abundantly in the gulf
countries and hence these countries have a
natural monopoly of the oil.
Public Monopoly - This kind of a monopoly
gets created in areas where the government
does not allow private participation and holds
monopolistic position for itself.
These are generally the areas of public utility
like Indian railways.
The idea is not to make profits, but to provide
necessary services to citizens at a reasonably
low price.
Legal Monopoly -
Legal monopoly is created by act of law.
Legal provisions like patent, trademarks,
copyrights etc are used by the producers to
create monopoly for themselves.
For example, if a company gets a patent for
some new product, the law prevents the competitors
to imitate that product.
If any firm tries to imitate patented product,
legal action can be taken against such a company
by the company holding the patent rights.
Private Monopoly - In this kind of a monopoly,
a private firm or an individual is in a monopolistic
position.
The main objective of private monopoly is
maximization of profit.
The best example for this kind of a monopoly
is Youtube itself.
Voluntary Monopoly also known as a Joint Monopoly
- This kind of a monopoly gets created
when big companies come together to form a
cartel and create a monopoly by way of voluntary
agreement.
For example, OPEC - OPEC is the association
of all oil producing and exporting countries
