Monopoly Power

Natural Monopolies, Cartels, & Patents

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by: Pui Yee (Billie) Sin

Natural monopoly refers to the monopoly condition which needs to form naturally because of the industrial development.

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In a cartel, which is for a collective profit group or official independent producer, the goal is to limit the price increases for a these groups, to limit supply, or other limited competition agreement.

A patent is a right granted to an inventor; the invention provides new works, new technology solutions to production, or new methods of production.
The patent protects the patent holder's invention.  It gives protection for limited time, generally 20 years, so that only the patent holder can utilize the invention.

 

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