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Charge of a Actual physical Resource A further variety of normal monopoly happens when a company has sole ownership (or majority control) of a scarce Bodily useful resource for which there won't be any shut substitutes. In the U.S. economic system, one historical illustration of this pattern happened when ALCOA—the Aluminum Corporation of The us—controlled a lot of the offer of bauxite, a crucial mineral used in building aluminum.
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A natural monopoly happens when the quantity demanded is fewer than the minimal quantity it requires to become at The underside from the extensive-operate common cost curve.
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