![]() Instead, there are imperfect monopolies all around the world. However, pure monopoly is a rare phenomenon. No matter how unfair the pure monopoly price is, the buyers will have to stick to that price. Therefore, the power centred around a pure monopoly is immense. This means that pure monopolies do not even have a remote substitute. This particular type of monopoly differs from all the other monopoly types because the substitutes available for the product in pure monopoly is zero. Different Types of Monopolies: Pure Monopoly Therefore, a discriminatory monopoly, as the name suggests, discriminate its buyers in different markets with different prices. Why a simple monopoly differs from a discriminating monopoly is that the discriminatory monopoly firm charges different prices for the same product to different buyers. In either way, a monopoly gets to maximize its profit. ![]() Monopoly can either choose to price differentiation and quantity differentiation. It bases its objective on profit maximization. Price differentiation is a special power that a monopoly enjoys. A simple monopoly operates in a single market with a single price, unlike a discriminating monopoly that operates in more than one market.Įxamples: water supply, railway services 2. Here, a simple monopoly firm charges a uniform price for its products when selling to all its buyers. This is one of the monopoly markets structures. Let’s explore these monopoly structures separately as follows.ĭifferent types of monopolies 1. Hence, a monopolist treats all consumers in an equal way and charges a uniform price for the product.
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