Explain any four types of monopoly.

Answer: Monopoly is a market with a single seller of a product having no close substitutes. Its types are:

1. Private monopoly: owned and controlled by a private individual or firm with the motive of profit, e.g. a patented drug made by a private company.
2. Public monopoly: owned and controlled by the government for public welfare, e.g. Indian Railways.
3. Legal monopoly: arises from legal protection such as patents, copyrights and trade marks.
4. Natural monopoly: arises from natural advantages such as location, natural resources or special talent, e.g. a singer with a unique voice, or a region having a rare mineral.
5. Simple monopoly: the monopolist charges a uniform price to all buyers.
6. Discriminating monopoly: the monopolist charges different prices to different buyers for the same product, e.g. a doctor charging different fees to rich and poor patients.
7. Voluntary monopoly: firms combine voluntarily (cartels, trusts) to get monopoly power.