Distinguish between the following: 3. Natural monopoly and Social monopoly

Distinguish between the following:

3. Natural monopoly and Social monopoly

Answer: 

Natural Monopoly
Social Monopoly
It is created due to the ownership of some natural resources.
It is created due to sole ownership and management by the government.

It arises because of factors such as good location, old establishment, goodwill of the firm and ownership of a natural resource.
​It is created deliberately for welfare motive.


No comments: