Chapter 7SectionMain Menu A government monopoly is a monopoly created by the government.
{"Image DocumentName": "Different market conditions can create different types of monopolies.", "Image ImageDescription": "Forming a Monopoly. Different market conditions can create different types of monopolies. 1. Economies of Scale. If a firm s start-up costs are high, and its average costs fall for each additional unit it produces, then it enjoys what economists call economies of scale. An industry that enjoys economies of scale can easily become a natural monopoly. 2. Natural Monopolies. A natural monopoly is a market that runs most efficiently when one large firm provides all of the output. 3. Technology and Change. Sometimes the development of a new technology can destroy a natural monopoly.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}