What is the difference between absolute monopoly and natural monopoly?

What is the difference between absolute monopoly and natural monopoly Introduction: Monopolies in Economics Hello everyone! Welcome to today's video, where we'll be exploring the intriguing world of monopolies. In the realm of economics, a monopoly refers to a market structure where a single entity dominates the entire industry. However, not all monopolies are created equal. Today, we'll be focusing on the distinction between absolute monopolies and natural monopolies. Absolute Monopoly: An Unrivaled Realm Let's kick things off by diving into absolute monopolies. As the name suggests, an absolute monopoly is a market situation where a single company holds an exclusive control over the production, distribution, and pricing of a particular product or service. In this scenario, there are no competitors, leaving the monopolistic entity with an unrivaled position. This type of monopoly often arises due to legal barriers, such as patents or copyrights, which grant the company exclusive rights for a specified period. Implications of Absolute Monopolies The implications of absolute monopolies can be far-reaching. On one hand, the monopolistic entity enjoys significant pricing power, allowing them to set prices at their discretion.