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A natural monopoly occurs when the most efficient number of firms in the industry is one. A natural monopoly will typically have very high fixed costs meaning that it impractical to have more than one firm producing the good. An example of a natural monopoly is tap water. It makes sense to have just one company providing a network of water pipes and sewers because there are very high capital costs involved in setting up a national network of pipes and sewage systems. To have two different companies offering water, wouldn't make sense as the average cost would be very high compared to just one. There would also be the inconvenience of having two firms dig up the road to lay a duplicate set of water pipes.
It usually agrees to allow the government to control the price and service provided. (gradpoint)
What else can I help you with?
Which of the following is true about a firm with a natural monopoly?
It ususally agrees to allow the government to control the price and service provided.
When Which one of the following is true about a firm with a natural monopoly?
A natural monopoly is likely to arise when economies of sale exist over the relevant range of demand.
What is the position of supernormal profits for a firm that is a monopoly?
true
How does natural monopoly function?
A single firm supplies all the output
What is an natural monopoly?
A natural monopoly exists when a single firm can supply a good or service to an entire market at a lower price than could two or more firms. Generally it arises when there are economies of scale over the relevant range of output.
Is public education a natural monopoly?
Yes public education is a natural monopoly because it is a market that runs most efficiently when 1 large firm supplies all of its output.
Who company is monopoly in Pakistan?
pakistan telecommunication company limited is a monopoly firm in pakistan. a monopoly firm is the one which has no competitors.
What kind of market runs most efficiently when one large firm supplies all of the output?
a natural monopoly
What market works runs most efficiently when one large firm supplies all output?
natural monopoly =)
Dominos fast food firm is a monopolistic firm or not?
it is not a monopoly firm
How are a monopolistic firm and a competitive firm similar?
Monopoly means that there are no competitor for your product or servises
One difference between a perfectly competitive firm and a monopoly is that a perfectly competitive firm produces where?
perfectly competitive industry become a monopoly， what changes
