Natural monopoly

A natural monopoly is an industry in which economies of scale are overwhelming, making it more efficient for a single firm to serve the entire market.

For example, water distribution.

Such industries are more commonly subject to very close regulation, rather than encouraging competition.

See also

• Antitrust law
• Cartel
• Competition & Markets Authority
• Economies of scale
• Monopolistic competition
• Monopoly
• Oligopoly
• Perfect competition
• Regulation
• Trust