Question

Discuss the difference between a traditional monopoly and a natural monopoly. Include the following points in your discussion.

a. Identify the incentives to produce and price the product for a traditional monopoly and natural monopoly.
b. Is it best for society, i.e., does society receive more welfare, to have natural monopolies provided by a private firm or by the government? Explain using examples such as the U.S. Post Office, utility companies, or cable companies.