What are the types of monopolies in microeconomics?
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Natural Monopolies
A natural monopoly exists when a variety of factors make competition unworkable, financially unfeasible or impossible. Many local telephone carriers have a natural monopoly in a certain area, as the extensive infrastructure necessary to support wired telephone service is too expensive for new competitors.
Geographic Monopolies
When only one business provides products or services to a local area, that business is a geographic monopoly. Typically, geographic monopolies emerge because the customer base is not large enough to support competition
A natural monopoly exists when a variety of factors make competition unworkable, financially unfeasible or impossible. Many local telephone carriers have a natural monopoly in a certain area, as the extensive infrastructure necessary to support wired telephone service is too expensive for new competitors.
Geographic Monopolies
When only one business provides products or services to a local area, that business is a geographic monopoly. Typically, geographic monopolies emerge because the customer base is not large enough to support competition
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