Yet, curiously, well into the game, there was an unusually generous exchange of money between two players, who covered each other as they landed on particularly large rents and were short on money.Ĭlearly, there was some illegal colluding going on between the players, which they defended as ‘gotcha back-ing’. As usual, a dearth of money appeared as those quickest to the monopolies began racking up huge, price-gouged rents. However, the lessons a group of freshmen took away from this elementary board game can be seen as good indicators of how much our society has internalized the Cold War.Īs the game progressed, it became clear that some players were accumulating properties more quickly than others. Was I reading far too much in between the properties? Perhaps. The values of Monopoly: shrewd money managing, heartless business dealings, and greedy, ceaseless expansion would make Captain Industry extremely proud.Īfter one particularly long game with Harvard students on a late night, to which I came out on the losing end, I began to see some parallels between the results of the game and events in world history, specifically the Cold War. As we dedicated players know, Monopoly games can become brutal they are a merciless battle of wits, a test of strength, and a harbinger of future success. So they can enjoy monopoly power in market.All of the avid board game fans out there will probably be able to relate to a recent experience I had. But when they combine their business, that leads to reduction in competition. Actually, pizza making firm and burger making firm are competitors of each other in fast food industry. engineering goods industry, automobile industry, software industry, etc.Ī number of business firms acquire monopoly position through amalgamation, cartels, syndicates, etc, it becomes joint monopoly. It emerges as a result of economies of large scale production, use of capital goods, new production methods, etc. Gulf countries are having monopoly in crude oil exploration activities because of plenty of natural oil resources. It emerges as a result of natural advantages like good location, abundant mineral resources, etc. Music industry is an example of legal monopoly. When monopoly exists on account of trade marks, patents, copy rights, statutory regulation of government etc., it is called legal monopoly. Such a monopoly firm charges different price to different customers for the same product. Simple monopoly firm charges a uniform price or single price to all the customers. So, it is also called as 'Welfare Monopoly' e.g. When production is owned, controlled and managed by government, it is called public monopoly. Such type of monopoly is profit oriented. When production is owned, controlled and managed by the individual, or private body or private organization, it is called private monopoly. vodaphone) is having competition from fixed landline phone service industry (e.g. So, there is fear of competition to some extent e.g. It means in this market, a product may have a remote substitute. It refers to a single seller market having no close substitute. It is also called as relative monopoly or simple or limited monopoly. There is absolutely zero level of competition. In this case, there is only a single seller of product having no close substitute not even remote one. Therefore, elasticity of demand factor is very important for him.Ĭlassification / Kinds / Types of Monopoly It means he can sell more at lower price and vice versa. Monopoly firm faces downward sloping demand curve. Since there is a single firm, the firm and industry are one and same i.e.There is a complete negation of competition.There is no free entry and exit because of some restrictions.There are no close substitutes for the product.A single seller has complete control over the supply of the commodity.It means he can fix either price or output but not both at a time.įollowing are the features or characteristics of Monopoly :. A monopolist can do either of the two things i.e. But it does not mean that he can set both price and output level. Monopolist is price maker and has a control over the market supply of goods. Such a single firm in market is called monopolist. This single seller may be in the form of an individual owner or a single partnership or a Joint Stock Company.
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