Distinguish between the following:
4. Natural monopoly and legal monopoly
Answer:
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Natural Monopoly
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Legal Monopoly
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It is created due to the ownership of some natural resources.
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It is created by the law.
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It arises because of factors such as good location, old establishment, goodwill of the firm and ownership of natural resources.
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It arises due to such provision as patents, copy rights, trade marks, etc.
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