Natural monopoly

From ACT Wiki
Jump to navigationJump to search
The printable version is no longer supported and may have rendering errors. Please update your browser bookmarks and please use the default browser print function instead.

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