The postal service in many countries is an example of a state monopoly. Sometimes, it provides the service itself. In this case, it can make one company the only legal supplier. The government may decide that a competitive market is not good for a certain industry. This is called a legal monopoly, but not because other monopolies are illegal! It is called a legal monopoly because it is created by law. One final way a monopoly occurs is for the government to make it happen. The competitors then become part of the first company. In a horizontal takeover, a company buys its competitors. For example, a publishing company might buy a printing business. In a vertical takeover, a company buys companies that supply it with materials or services. Takeovers happen vertically or horizontally. This means that a more powerful company buys a smaller one in the same industry. However, the world of business is a jungle, and there are more aggressive ways to create a monopoly. Any other company that wants to compete will have to make their own network. However, once they have made the network, running the system does not cost so much. Telephone companies have to spend millions of pounds laying cables. Economies of scale are possible for companies which need a lot of money to set up but much less money to run. Increasesin supply Everycompany would like toīe in this situation Unfortunately, it's not easyto achieve. An economy of scale is when variable costs of production increase more slowly than Somemonopolies occur naturally This happens when a company manages to create an economy of scale. Monopolies come in different kinds, but a pure monopoly is when there is only one company in the market providing a particular product or service This situation, in fact, is the exact opposite of perfecf соmpetition. When there is а monopoly, the normal laws of supply and demand do not always work. In a monopoly, one company has a much larger market share than anyother company Infact, their share is so big that other companies cannot really compete. Raw materials are things like wood or oil that existĤ Electricity travels along.to reachĥ.people get what they want byĦ.companies are responsible for theħ.companies make books.Ĩ.is inventing and thinking of newĩ If something is.it is allowed by law.ġ0 When something is.it is notġ1 If a problem.you will have to deal When one company gains control of another company it is called a.