Difference between revisions of "Natural monopoly"
Jump to navigation
Jump to search
TempestHead (talk | contribs) |
|||
| Line 1: | Line 1: | ||
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. | ||
| + | |||
| + | {{stub}} | ||
Revision as of 22:20, March 14, 2007
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.