What are the different types of monopolies? What are the effects of each type on economies?

There are four types of monopolies. They include:

• Natural monopoly. This refers to a monopoly in which an organization rises to be a monopoly as a result of economies of scale. The monopoly retains its operations without competition due to the multiplicity of factors preventing entry by other firms. Holding power to affect prices at will enables the natural monopoly to set prices of the commodity for the whole economy.
• Geographic monopoly. In this type of monopoly, a firm sells products or services alone in a specific locality since the market is not enough to support other firms. The geographic monopoly only affects the economy of the region in which it operates by setting prices of the commodity it sells.
• Technological monopoly. The monopoly arises when a firm is the first to market a product or service, hence being accorded legal protection. This type of monopoly set the initial prices of commodities and determine the wages and salaries offered in the line of the goods and services they offer.
• Government monopoly. This refers to the power that the government holds in the sale of specific goods and services. In so doing, the government sets the prices of the goods and services; hence, the government's price is the price used in the whole economy.