Monday, December 13, 2010

Four natural monopolies



A type of monopoly that exists as a result of the high fixed or start-up costs of operating a business in a particular industry. Because it is economically sensible to have certain natural monopolies, governments often regulate those in operation, ensuring that consumers get a fair deal.
Investopedia Says
-From Investopedia




When a market's potential profit is so limited by its geographic location that only a single seller decides to enter the market.
An example would be like a store in a rural area
- From Answers.com

Technological monopolies occur when the good or service the company provides is has legal protection in the form of a patent or copyright.
Ipods and apple products are an example of technological monopolies.
-From Ehow

Sometimes a government will pass laws reserving a specific trade, product or service for government agencies. 
The turnpike is an example or an electric company.


-From Ehow

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