The difference between a
Explanation of Solution
Monopoly is a market structure in which a single seller selling a single commodity has no close substitutes. In monopoly, the firm’s
A natural monopoly is a kind of monopoly in which economies of scale work as a high barrier to entry. This would mean that, in a natural monopoly, the long-run average cost continuously falls as production increases. This low cost of production acts as a barrier to the entry of new firms into the market.
Monopoly: Monopoly is a market structure, which is characterized by a single seller selling a single commodity without close substitutes. They have control over price and are known as price makers.
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