What is the difference between natural monopoly and monopoly?

Marketing Dec 29, 2020

Expert Solution

A monopoly is any market controlled by a single seller. A natural monopoly is a specific type of monopoly. A natural monopoly is a monopoly that was created because of high start-up costs, an economy of scale, or other naturally occurring barriers to entry. A natural monopoly is often regulated heavily as the market outcome is considered inefficient and undesirable.

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