ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A grocery store in a remote Alaskan village is an example of a monopoly caused by geographic factors. Because the potential for profits is so small, other businesses choose not to enter, thus giving the sole provider a geographic monopoly.

Detailed explanation-2: -Geographic monopolies occur when a business is the only one offering its products or services in a particular location. Geographic monopolies are common in small towns with limited businesses, especially in the service industry.

Detailed explanation-3: -Types of Natural Monopolies For example, the utility industry is a natural monopoly. The utility monopolies provide water, sewer services, electricity transmission, and energy distribution such as retail natural gas transmission to cities and towns across the country.

Detailed explanation-4: -Monopolies can be of several kinds like simple, pure, natural, legal, and public.