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

2. 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.

3. 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.

4. 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.

5. 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.