06 September 2009
Monopoly is a condition where there's only one seller and we don't have any other choice to buy a product or service. for example the pertamina long time ago, when we want to buy gasoline that time only pertamina that provide it. so, consumers reluctantly have to buy from pertamina. but it different now, gasoline companies in indonesia is more than one, such as : petronas, shell, and many more.
the source we're searching for is wikipedia said that " In economics, a monopoly (from Greek monos / μονος alone or single + polein / πωλειν, to sell) exists when a specific individual or an enterprise has sufficient control over a particular product or service to determine significantly the terms on which other individuals shall have access to it[clarification needed] Monopolies are thus characterized by a lack of economic competition for the good or service that they provide and a lack of viable substitute goods. "
we can divide monopoly into two cases, pure monopoly and pure competition. pure monopoly as well as we know there's one seller with a lot of customers and there's no other seller that provide the same product or service. and pure competition is condition where there's a lot of sellers and a lot of customers, and each sellers provide almost the same product or services.
