Forms of Market — Economics STD 12 Commerce / Arts — Question

1. The monopoly power acquired by a firm due to natural advantages such as good location, control over scarce resources or natural skill, etc.
2. The main objective of a natural monopolist is to maximise profits.
3. Monopoly due to location or may be old establishment like the TATA products or Godrej Locks, Cupboards etc., or an actor like Amir Khan.

Legal Monopoly:

1. It arises due to legal protection given to the producers by the government authorities.
2. The objective is to prevent the competitors from producing identical products.
3. Monopoly due to legal rights, conferred by the government such as patent right, copy right, trade marks etc.