4 Types of Monopolies 1. Natural monopoly 2. Geographic Monopoly 3. Technological Monopoly 4. Government Monopoly

1. Natural Monopoly--competition is not desirable or technically possible. Ex. Local phone company Transit buses **It would be too confusing to bring in several different companies, so the gov’t gives a franchise.This gives exclusive rights to work in a certain area.

2. Geographic Monopoly --firm can set its own price because of its location Ex. Only drugstore in a small town Laundromat by apartments **Geographic monopolies cannot always keep away competition.

3. Technological Monopoly --firm control price and supply because it has exclusive right to do so. Exclusive Rights 1. Patent--exclusive right to use, sell, or manufacture a product 2. Copyright--exclusive right to publish art or literary work for life plus 50 years.

4. Government Monopoly --where gov’t owns and operates a certain industry or product Ex. Currency Manufacture Tennessee Valley Authority **most gov’t monopolies deal with products which promote public welfare and would not be provided by public industry.