在这个问题上，我们要清楚界定的垄断和给它的几个例子。那么找出垄断的特征，这是一个卖方和大量的买家，没有接近的替代，限制进入新公司与登广告。在那之后，我们正在讨论的垄断，这是自然垄断和法定垄断类型，这些都是两类障碍。可以作为政府创造的垄断，还提到合法垄断。在这种情况下，我们会详细讨论在两种类型的垄断。我们已经讨论和提供各种图为更进一步的了解。
垄断的定义——Definition of Monopoly
垄断市场的特征——Characteristics of Monopoly Market
First of the characteristic is that one seller and large number of buyers, this is the monopoly enterprise existence when there is only one seller of a product and it is only the firm that in the industry selling a product which has no close substitution. Monopoly market is the place where the monopoly enterprise operates so basically there are no different between a firm and an industry in monopoly as there only one seller. A monopolist is a price maker since there is one seller or producer and it has the market power to control over the price.
Second is no close substitution. No close substitution that is monopoly enterprise would like to sell a product which has no close substitute. It's the consumers and buyers could not find any substitute for the product. For example, water supply from local public utility which has no close substitution, but if the buyer can find any substitution of water service so that is no more in monopoly.
Thirdly is the restriction of entry of new firms. It is in a monopoly market, there are strict barriers to the entry of new firm. The barriers to entry are natural or legal restrictions that restrict the entry of new firms into the industry. A monopolist faces no competition because of barriers of entry. Example for the barriers to entry, that's limit pricing, firms may adopt predatory pricing policies by lowering prices to a level that would force any new entrants to operate at a loss.
Fourthly is advertising, it is advertising in monopoly market depends on the products sold. That is to developing consumer loyalty by establishing branded products can make successful entry into the market by new firms much more expensive and this is also particularly important in markets such as cosmetics, confectionery and the motor car industry. For the local public unities such as home phone service, water service and electricity don't need to make advertisement by the monopolist since the consumers know from where to obtain the product.
垄断的类型——Types of Monopolies
Natural Monopoly
Natural monopoly is a one firm can produce at a lower cost compared to what two or more firms could produce or it is the lower due to economies of scale if there is just a single producer than if there are several competing producers. For examples, a bigger plant in the generation electricity can supply electric power with lower cost compared to a few firms.
Government-Created Monopolies
This section is to look into the government-created monopolies, government created have many monopolies. This is to prevent firms from entering business into a market. This can be done through difficulty in obtaining license to operate in the market or providing patent and copyrights to a monop
