The Four Market Structures - Monopoly

Monopoly 

What is monopoly?

A pure monopoly is an industry with a single firm that produces a product that has no close substitutes and in which there are many firms of barriers to entry.

Do you know there has few types of barriers to entry in monopoly?

·Patents/ Copyrights

-Legal restrictions that prevent other firms from entering the market to produce the same product.

· Economic of scale

-The large scale of operation provides the advantage of having a lower cost of production.

· Government  directive

-It is a consequence of imposition of regulation by government that makes entry of new firms unattractive.

 

Tenaga National Berhad is the largest power company in Southern Asia. It is also the only one and the largest electric utility company in Malaysia. 

 

KTM is the main rail operator in Peninsular Malaysia. It is wholly owned by the government Malaysia. 

Telekom Malaysia is the largest integrated solutions provider in Malaysia. It offers a range of communication services and solutions in broadband, data and fixed-line.

· Large initial investment 

-Purchases with a large modal to set up new initial facilities and also lead to high cost for the firm.

Resources: http://www.econlib.org/library/Enc/Monopoly.html 
          http://answers.reference.com/information/terminology   /what_is_monopoly_in_economics