A type of monopoly that exists as a result of the high fixed or start-up costs of operating a business in a particular industry. Because it is economically sensible to have certain natural monopolies, governments often regulate those in operation, en...
A natural monopoly is a monopoly in an industry in which it is most efficient (
involving the lowest long-run average cost) for production to be permanently ...
The utilities industry is a good example of a natural monopoly. The costs of
establishing a means to produce power and supply it to each household can be
Definition of natural monopoly: Situation where one firm (because of a unique
raw material, technology, or other factors) can supply a market's entire demand
Find out what a natural monopoly is and why they exist. Learn about some
everyday services that you use that are provided by companies that are...
A natural monopoly exists when a single firm can derive most the benefits of
economies of scale available to the whole industry.
Nov 28, 2012 ... A natural monopoly occurs when the most efficient number of firms in the industry
is one. A natural monopoly will typically have very high fixed ...
Feb 14, 2015 ... For a natural monopoly the long-run average cost curve falls continuously over a
large range of output. The result may be that there is only ...
Theoretically, natural monopoly arises when there are very large "economies of
scale" relative to the existing demand for the industry's product, so that the larger
Natural monopolies occur when a single firm can serve the entire market at a
lower cost than a combination of two or more firms.