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Monopoly

A monopoly exists when a single company owns all or most of the market share for a particular good or service due to barriers to entry that prevent competition. This allows the company to operate without competition and produce a lower volume than would maximize social welfare. Examples of monopolies include Indian Railways in railroad transportation, state electricity boards over power generation and distribution, Hindustan Aeronautics Limited for aircraft production, and government monopolies over nuclear power, some city bus services, and landline telephone service through BSNL.

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Raj Prabhu
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34 views

Monopoly

A monopoly exists when a single company owns all or most of the market share for a particular good or service due to barriers to entry that prevent competition. This allows the company to operate without competition and produce a lower volume than would maximize social welfare. Examples of monopolies include Indian Railways in railroad transportation, state electricity boards over power generation and distribution, Hindustan Aeronautics Limited for aircraft production, and government monopolies over nuclear power, some city bus services, and landline telephone service through BSNL.

Uploaded by

Raj Prabhu
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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43454

A situation in which a single company owns all or nearly all of the market for a given
type of product or service. This would happen in the case that there is a barrier to entry
into the industry that allows the single company to operate without competition (for
example, vast economies of scale, barriers to entry, or governmental regulation). In
such an industry structure, the producer will often produce a volume that is less than
the amount which would maximize social welfare.

43454
O ndian Railways has monopoly in Railroad transportation
O State Electricity board has monopoly over generation and distribution of electricity in many of the
states.
O Hindustan Aeronautics Limited has monopoly over production of aircraft.
O There is Government monopoly over production of nuclear power.
O Operation of bus transportation within many cities.
O Land line telephone service in most of the country is provided only by the government run BSNL.

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