Economics assignment mithal shah

Name: Mithal Shah
Roll no. BL-1657
Section B (Group 9)
INTRODUCTION
A monopoly is a market structure in which there is a single supplier of a product.
Monopolies exist because of barriers to entry into a market that prevent competition. The
monopoly firm (monopolist):  May be small or large. Must be the only supplier of the
product.  Sells a product for which there are only close substitutes.
True monopolies generally exist in government-controlled markets.
E.g., PTCL: Pakistan telecommunication company limited.
WAPDA: The water and power development.
Monopoly in private business is rare.
Private firms who have considerable market share.
E.g., Microsoft, intel, google,
TYPES OF MONOPOLY
Natural monopoly: A monopoly that arises from economies of scale. The economies of
scale arise from natural supply and demand conditions, and not from government actions.
Local monopoly: a monopoly that exists in a limited geographic area.
Regulated monopoly: a monopoly firm whose behavior is overseen by a government
entity.
Monopoly power: market power, the power to set prices.
Monopolization: an attempt by a firm to dominate a market or become a monopoly.
The case of monopolist (E.g., Government controlled endeavors) might choose not to take
advantage of these potential Profit.
For example, In Pakistan power is provided by government claimed endeavors
(E.g.,WAPDA) because of which the undertaking not take advantage of likely benefits
anyway it’s the only producer it can exert its power. Rather than this, it changes the
maximum cost fixed by the government
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