Real World Monopolies
Real World Monopolies
Describe an example of a real-world industry or market that would be considered by economists to be a natural monopoly.
- What characteristics of the industry make it a monopoly?
- What is the impact of the monopoly power on its customers?
- Why might government want to regulate natural monopolies?
- How might such regulation be structured?
150 words
For this discussion question, think of your water, electric, and gas. Do you get those products from multiple producers or one? How do they operate? Aren’t prices for those needed products relatively cheap considering?
150 words
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A natural monopoly occurs when the long-run average cost curve continuously falls over a range of output that is large. This occurs because of the fact that the most efficient number of…
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