Monopolies can be caused by a variety of factors, including government-granted monopolies, natural monopolies, and barriers to entry. Government-granted monopolies are created when a government grants exclusive rights to a company to produce and sell a particular product or service. Natural monopolies occur when a single firm is able to produce a good or service at a lower cost than any combination of two or more firms. Barriers to entry are factors that make it difficult or impossible for new firms to enter a particular market, such as high start-up costs, exclusive access to resources, or government regulations.
