What is the difference between artificial and natural monopoly
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What is the difference between artificial and natural monopoly
Answer:
Artificial Monopolies
Here the barriers to entry are not economic in nature. An example of a barrier is a patent. A patent is a legal and exclusive right to manufacture a product, e.g. Denel Land Systems manufacturing Casspirs.
Natural Monopolies
High development costs prevent others from entering the market and therefore the goverment supplies the product. E.g. Electricity ini South Africa is provided by the goverment enterprise, Eskom. It costs billions of rands to build and maintain power stations and therefore there are no other suppliers.
Artificial Monopolies
Here the barriers to entry are not economic in nature. An example of a barrier is a patent. A patent is a legal and exclusive right to manufacture a product, e.g. Denel Land Systems manufacturing Casspirs.
Natural Monopolies
High development costs prevent others from entering the market and therefore the goverment supplies the product. E.g. Electricity ini South Africa is provided by the goverment enterprise, Eskom. It costs billions of rands to build and maintain power stations and therefore there are no other suppliers.
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You are currently reading the article about lessons What is the difference between artificial and natural monopoly and this lesson url permalink of the article was https://choosequestion.blogspot.com/2016/08/what-is-difference-between-artificial.html Hopefully this question and answer article can give good answers, good learning.