Economy, asked by Hirimbobrahma, 1 year ago

difference between natural monopoly and artificial monopoly

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Answered by harshitha8
19
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Answered by MarkM
31

A natural monopoly is a monopoly that exists as a result of an industry having natural barriers to entry such as fixed cost and the only existing firm in the industry has been in existence for a long time making it hard for new entrants to enter and make substantial profits. It occurs mostly in provision of public services such as water.

An artificial monopoly  is whereby a large firm is able to maintain control of an industry so much that it becomes difficult for others to get in.

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