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Types of Monopolies

Monopoly Resources: Monopolies rarely arise from exclusive ownership of a key resource.
Government-Created Monopolies: Governments may restrict entry by granting a single firm the exclusive right to sell a particular good in certain markets. Patent and copyright laws are examples of this.
Natural Monopolies: An industry is a natural monopoly when a single firm can supply a good or service to an entire market at a smaller cost than could two or more firms. This arises when there are economies of scale over the relevant range of output.
graph - economies of scale as a cause of monopoly