Hi can you respond to this A traditional monopoly maintains its status using eit

Question

Hi can you respond to this


A traditional monopoly maintains its status using either some legal device (eg. patents, charter, etc) or using some commercial maneuver (eg. threatening or buying out competitors, bribing officials to ensure that other competitors do not get licenses). A natural monopoly operates in an industry where entry costs are high but running costs are low, and economies of scale are evident. Eg. post office, utilities, electricity supply, etc.

It would be wrong to say that all monopolies are bad. After all, the government has a monopoly in providing transportation security.
A monopoly needs to be regulated rather than banned outright.

Explanation / Answer

yes this is true.once can say that government has a monopoly in currency printing and banks transactions.so this is a natural monopoly and it can lead to lesser problems and an effective running of the system.the running costs would definitely be low and economies of scale like the given examples are highly efficient have a great utility in providing service and monopolized by the government.

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