标题: Question About Natural Monopolies [打印本页] 作者: TheMBAGlover 时间: 2011-7-13 16:28 标题: Question About Natural Monopolies
A natural monopoly is most likely to exist when:
a) economies of scale are great
b) ATC increases as output increases
c) a single firm owns essentially all of a productive resource
The answer is A, but I'm confused as to why the answer is not C. Any help?作者: sdada 时间: 2011-7-13 16:28
In Natural Monopoly, the very reason why there is a monopoly is because that business is not economically feasible for other firms...they may have the resources but capital reqt are generally high...so to reduce cost they have to more作者: JRossSter 时间: 2011-7-13 16:28
nuppal Wrote:
-------------------------------------------------------
> varundarji Wrote:
> --------------------------------------------------
> -----
> > In Natural Monopoly, the very reason why there
> is
> > a monopoly is because that business is not
> > economically feasible for other firms...they
> may
> > have the resources but capital reqt are
> generally
> > high...so to reduce cost they have to more
>
>
> Not entirely true. For instance, some of the
> Utilities companies hold monopolies in regions
> because of governemnt regulartions preventing
> pricing wars. Although the structure is more of an
> Oligopoly, in reality it is a monopoly.
