Please give five real life examples in India for the terms monopoly, monopolistic competition and oligopoly. Detailed examples which are still existing in India would be much appreciated. 

Expert Answers

An illustration of the letter 'A' in a speech bubbles

The primary monopolies in India are government monopolies of utilities and transportation. One specific example is the government monopoly of rail transportation through Indian Railway: Lifeline to the Nation (IR). Interestingly, IR has recently proposed to change its method of purchasing electrical power from energy suppliers to a "bidding process at economical tariff." A monopoly has no competitor, there is no substitute, and there is restricted entry to the market. In the case of IR, entry is restricted by the government.

A monopolistic competition is represented by the synthetic fiber production market in India. While there are many firms that manufacture synthetic fiber, such as Sky Industries and Sumeet Ind, Zenith Fibres Ltd is the only one to produce "Polypropylene Staple Fibre (PPSF) used as raw material in 100% PP Yarn. ... and they are the only manufacturer of this product in India with 100% market share" (Rajesh Bihani). This exclusivity of product positions Zenith in a monopolistic competition.

An oligopoly is a market in which a few powerful firms dominate over minor entrants. In India, the airways represent an oligopoly, with a few competitors having the greatest market shares. Two of the top airlines are IndiGo and Air India and, while there are other airlines that provide specialized services, the major competitors rule the industry relevant to domestic air transportation market share in India ("AIRLINE COMPETITION" 2014):

  • IndiGo airline: 29.5% market share
  • Jet Airways (India): 22.5% market share
  • Spike Jet: 19.8% market share
  • Air India (Domestic): 19.1% market share
  • Go Air: 9.0% market share
Approved by eNotes Editorial Team

Posted on

Soaring plane image

We’ll help your grades soar

Start your 48-hour free trial and unlock all the summaries, Q&A, and analyses you need to get better grades now.

  • 30,000+ book summaries
  • 20% study tools discount
  • Ad-free content
  • PDF downloads
  • 300,000+ answers
  • 5-star customer support
Start your 48-Hour Free Trial