Margin monopoly

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Margin monopoly is a monopoly for which there is an upper limit (marginal point) beyond which the monopolist cannot raise his monopoly price without inviting competition. A marginal monopoly is possible only when the ability to charge monopoly prices is dependent upon an exclusive advantage which is limited for either natural or institutional reasons, as in such cases where the monopolist enjoys greater fertility, richer ores, greater productivity, location or transportation advantages, tariff protection, governmental subsidies or price controls, etc.[1]


  1. Percy L. Greaves, Jr. "Mises Made Easier ", 1974. Referenced 2014-07-20.