Difference between revisions of "Natural monopoly"
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A '''natural monopoly''' is a firm that enjoys increasing [[economies of scale]], so much so that it can supply the entire market more cheaply as one massive firm than if there were two or more firms. Examples of natural monopolies include gas or electric companies, cable companies and railroads. | A '''natural monopoly''' is a firm that enjoys increasing [[economies of scale]], so much so that it can supply the entire market more cheaply as one massive firm than if there were two or more firms. Examples of natural monopolies include gas or electric companies, cable companies and railroads. | ||
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Latest revision as of 16:30, July 13, 2016
A natural monopoly is a firm that enjoys increasing economies of scale, so much so that it can supply the entire market more cheaply as one massive firm than if there were two or more firms. Examples of natural monopolies include gas or electric companies, cable companies and railroads.