NATURAL MONOPOLY SOCIAL MONOPOLY

22. NATURAL MONOPOLY
SOCIAL MONOPOLY
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


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.