MONOPOLY( Lat. noonopolium, from Gk. novo riAtop, right of exclusive sale, povorwM(a, mono piitia, exclusive sale. from p6vor, mottos, single +7r/aXeie, poicia, to sell). In its strictest sense, a grant of the Crown or State to a private in dividual or corporation of an exclusive right to carry on a certain class of business or traffic. In a general and more modern sense it signifies such control of a given class of articles or of the traffic in them as will make it possible to raise their price higher than the level of prices fixed by free competition. A typical example of a monopoly of the first class is the grant of a patent right. which in effect gives the grantee an exclusive control over the production of and traffic in the patented article; a common example of monopolies of the second class is the exclusive control of mineral or other special products of the land by virtue of ownership of land. ).lonopolies may be classified as public
or private according as they are managed by the Government or by private individuals, associ ations, or corporations.
Private monopolies may be classified as (I) legal monopolies, resting upon a grant from the Government. of exclusive privileges for manufac ture or sale: (2) natural monopolies, which are based upon the control of a limited natural product through the ownership of land or other natural resources, or of exclusive natural facili ties for transportation: and (3) capitalistic monopolies. which hold their power over prices by virtue of the fact that. an enormous capital is required in certain industries so that an established plant always has a great advantage over a new competitor. This last form of monopoly is discussed at length in the article