Question

Identify four distinct sources of monopoly. Very briefly describe the market conditions that give rise to natural monopoly.

Answer 1

O natural monopoly ces a types of monopoly that exists due to the high. stakt-up costs or powerful economies. of scale of conducting a business in a specific industry. O company with a natural economy monopoly might be the only provider or a product or service is an industry bi 1... .

a monopoly arises as a result of economics of scale. For natural monoplolig the average total cost declines continually as output increases, giving the monopolist can overwhelming cost adwantage over potential competitors. It becomes most efficient for production to be concentrated in a single hem.