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Q: Is cable tv service considered a natural monopoly?
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An example of a natural monopoly would be a congested public freeway. an airline flight that has been overbooked. local cable television service. public parking?

I would have to say a local cable tv service. It is the only one that would fit the description at all. I chose it because as the only cable provider in the area (hypothetically), there would be no competition for it, thus creating a natural monopoly on all cable business in the area.


Why is cable TV a natural monopoly?

A natural monopoly is characterized by an average total cost curve that is always decreasing. This is usually the result of very large fixed costs combined with relatively small marginal and variable costs. These conditions make a single producer more efficient than multiple smaller producers because the larger producer can spread out the large fixed costs over a larger number of outputs. Cable TV is generally considered to be a natural monopoly because a cable TV company requires a large amount of infrastructure, a fixed cost, to provide service to a single customer. Once this initial cost has been payed for, however, it is relatively inexpensive to extend service to an additional customer by simpling laying down a small amount of wiring.


What is an example of a natural monopoly?

In economics, a natural monopoly occurs when, due to the economies of scale of a particular industry, the maximum efficiency of production and distribution, realized through a single supplierRead more: What_is_natural_monopoly


Match the type of market structure with each example?

A. Pure competition Computer operating systems B.Near monopoly Fast food restaurants C. Monopolistic competition Online auctioning D. Oligopoly Car makers


What is a sentence for monoply?

In some small communities, only one Internet provider and cable television provider is available, thus giving the provider a monopoly in that area.

Related questions

An example of a natural monopoly would be a congested public freeway. an airline flight that has been overbooked. local cable television service. public parking?

I would have to say a local cable tv service. It is the only one that would fit the description at all. I chose it because as the only cable provider in the area (hypothetically), there would be no competition for it, thus creating a natural monopoly on all cable business in the area.


Why is cable TV a natural monopoly?

A natural monopoly is characterized by an average total cost curve that is always decreasing. This is usually the result of very large fixed costs combined with relatively small marginal and variable costs. These conditions make a single producer more efficient than multiple smaller producers because the larger producer can spread out the large fixed costs over a larger number of outputs. Cable TV is generally considered to be a natural monopoly because a cable TV company requires a large amount of infrastructure, a fixed cost, to provide service to a single customer. Once this initial cost has been payed for, however, it is relatively inexpensive to extend service to an additional customer by simpling laying down a small amount of wiring.


What is an example of a natural monopoly?

In economics, a natural monopoly occurs when, due to the economies of scale of a particular industry, the maximum efficiency of production and distribution, realized through a single supplierRead more: What_is_natural_monopoly


Is dish cable or antenna?

Dish TV is a satellite service that is offered for people to watch cable television. It does involve the introduction of some cables to the home but is still considered a satellite service rather than a cable service or an antenna service.


What is meant by the term cable service providor?

A cable service provider is a company or a provider that provides cable service. Every cable service provider offers you the ability to go online and experience the internet.


Is Time Warner cable service better than Charter cable service?

Time Warner is typically not considered a better option than Charter. Charter serves smaller markets where Time Warner serves larger markets.


Which cable companies offer DVR service?

Cox cable offers DVDR service with its digital cable package.


Is basic cable service better than DSL?

This question could have a variety of answers, but DSL is usually considered to be more reliable than cable internet service. Cable internet speeds can vary depending on traffic usage in the nearby area, while DSL speeds stay constant.


Who provides dsl internet service in Alamance County, North Carolina?

Verizon provides DSL service to Alamance county. An alternative would be Time Warner Cable who also provides a type of DSL service as well. Time-Warner provides cable, although they have a monopoly and their prices are high. You can get DSL from AT&T, Verizon, Earthlink and others. ClearWire might provide wireless internet to some parts of Alamance county.


Does brighthouse cable service chicagoland?

No Brighthouse Cable does not service Chicago, but it does service many other countries in the United States.


What is Cable type electrical service?

cable tv


Why are internet cable providers limited in each area?

Cable companies usually have a monopoly from the government, or at least from owning the physical cables, in each area. In a few places you can find different internet service providers using one company's cables, but most places are limited to the one provider.