Economics FHS 1 | Page 13

PURE MONOPOLY- in which one company has control over the entire market for a product,usually because of a barrier to entry such as a technology only available to that company.

EXAMPLE- professional sports team (the Denver Broncos are the only professional football team in Denver)

NATURAL MONOPOLY-a market situatuion where the cost of production are minimized by having a single firm produce the product.

EXAMPLE- water services (inefficient and waste of money to have several companies laying pipes throughout city)

TECHNOLOGICAL

MONOPOLY- a monopoly based on ownership or control of a manufacturing method,process, or other scientific method.

EXAMPLE- Microsoft (a near monopolistic in PC operating systems)

GEOGRAPHIC MONOPOLY- based on the absense of other sellers in a certain geographic area. similarly, the owner of the only gas station on a lonely highway exit also has a geographic monopoly.

EXAMPLE- general store in a remote community

GOVERNMENT MONOPOLY- A monopoly owned and operated by the government. can be found in the national, state, and local levels of government.

EXAMPLE- postal service