Why a natural monopoly is caused by entry prices being high

Reference no: EM13201299

a Traditional monopoly would be Intel creating business deals with PC manufacturers that require them to purchase Intel's chip sets along with their processors. Or paying their vendors to offer little to no support for their competitors processors.

A natural monopoly is caused by entry prices being high while operational prices are low. In order for company B to get into the market for processors they have to endure high initial costs which would be where most will flounder.

Reference no: EM13201299

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