What is the theory of natural monopoly? Describe the main federal regulatory commissions? What is the new social regulation?© BrainMass Inc. brainmass.com October 15, 2018, 4:31 am ad1c9bdddf - https://brainmass.com/economics/natural-resource-economics/what-is-the-theory-of-natural-monopoly-495797
What is the theory of natural monopoly?
The theory of natural monopoly states that in various industries, certain competitors will have created a natural monopoly due to demand + the industry conditions. An electric company is a good example of a natural monopoly. The main electric company/illuminating company has a monopoly in the given area and has been able to establish the resources and relationships needed in order to build effective cost relationships. A competitor enters into the same area as an electric provider but can't offer the same rates because their customer base hasn't yet been established and they haven't yet ...
What is the theory of natural monopoly? Describe the main federal regulatory commissions? What is the new social regulation?