Different types of monopolies may be following-
(1) Natural Municipal rights: If the supply of an object is localized in one place; then the monopolitan is known as the ‘natural’ monopolace, for example, Bangladesh has the monopolace of raw jute and India has the monopolace of manganese.
(2) Legal Museum: When a firm is given the legal right to produce a unique item, it is known manually as legal. For example, the right to issue note has been a legal monopolitoring.
(3) Public Municipal Rights: When created manually for the interest of the public, it is known as public monopolitoring. For example, there are various public utility services, such as water supply, electricity, telephone, railway, public monopolitoring; these are often known as ‘professional monopolitoring’.
(4) Private Monopolitoring: It is owned and operated by whom the private person or organisation aimed at obtaining maximum profit.
These monopolies can be further classified:
1. Simple monopolitan; and
2. Discrimental monopolitan right.
A simple private monopolace charges the same price from all consumers for its product, while on the other hand, a discrimental monopolace charges more than one price for the same product from different consumers or customers. .
‘onright’ of emergence and perceptions.
A monopolist has no control over the demand of the product, but he can control the product supply. or near a multiple
(a) the power to determine the price of the product is; or
(b) Quantity sold in the market.
He cannot determine both because he cannot control demand. Thus, the main assumption of the monopolitan firm is that its demand curve is tilted downwards; to sell more he has to cut his price. Moreover when demand curve (AR curve) is on the bottom side, from left to right slope, marginal revenue is no longer the equivalent of price. This will be below the AR curve. While in full competition situation the firm’s demand curve is a horizontal line.
Thus, when the monopolist makes decisions about the price at which he is ready to sell, the demand curve will determine the quantity sold at this price. If he is firm to market a given quantity per month, the demand curve will decide the price at which this quantity can be disposed of. If monopolist produces large amounts, the price will be lower and profits will also be lower. If he produces comparatively lower quantity, the price will be higher but the sale will be lower and the total profits will also be lower. Therefore, monopolist will not follow any of these policy. He will decide his output in a way that the maximum possible net revenue of net profit could be safe.
Price-Determination under Machinery
The market is classified based on competition. Multiple rights between buyers and sellers are also an extremely important form of the market. So it’s also important to know how the price is determined in the monopolitoring?
The main purpose of monopolist is to maximize its profit. It’s important to note in this regard that a monopolist is always interested in maximizing their total profit, not in per unit profit.
However, it holds full control over the supply of monopolitical object, yet it has no control over the demand, so, he cannot determine the price and object together. At a time he can decide only one of the items’ price or supply. If he determines the amount of supply, he has to set the price according to the terms of demand. By contrast, if he decide and decide the price, at the price he decided, considering the demand, there must be decided about the supply quantity. Usually, the monopolist price sets, because whatever the demand of the item at this fixed price can determine the amount of supply of the item accordingly.
In the monopolitical system, the pricing can be done after divided into two categories:
1. Price-setting in short term; and
2. Price-determination in long term.