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22. NATURAL MONOPOLY
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SOCIAL MONOPOLY
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1.
Meaning
The
monopoly power is acquired by a firm due to natural advantages such as good
location, control over scarce resources, etc.
2.
Price Factor
Normally,
the monopolists would change higher price of the goods
3. Objective
The main objective of natural monopolist is to
maximise profits
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When the Government owns and controls the
production of goods, it is called as social monopoly.
Normally, the Government may not charge
higher price for the goods.
The main objective of social monopoly is
to provide social welfare.
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NATURAL MONOPOLY SOCIAL MONOPOLY
