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Monopoly

Where there is one large firm selling a product with no close substitutes that has considerable control over prices and supply. Before privatisation, many of the utility companies such as British Telecom and British Gas were monopolistic businesses. Royal mail holds a monopoly on the delivery of letters. Microsoft has a near monopoly on PC operating systems – with its Window Vista Operating System. It has maintained this through heavy investment in technological development and securing patents over its intellectual property.

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