A natural monopoly is a monopoly in an industry in which high infrastructural
costs and other barriers to entry relative to the size of the market give the largest ...
A natural monopoly is 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 ...
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
Nov 28, 2012 ... An example of a natural monopoly is tap water. It makes sense to have just one
company providing a network of water pipes and sewers ...
Learn more about natural monopolies in the Boundless open textbook.
Aug 29, 2006 ... literature on the regulation of natural monopolies. ... Keywords: natural monopoly,
economies of scale, sunk costs, price regulation, public.
Most so-called public utilities have been granted governmental franchise
monopolies because they are thought to be "natural monopolies." Put simply, a
A natural monopoly exists in a particular market if a single firm can serve that
market at lower cost than any combination of two or more firms.
A natural monopoly exists when average costs continuously fall as the firm gets
larger. An electric company is a classic example of a natural monopoly. Once the
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