Purchase Solution

What is the theory of natural monopoly?

Not what you're looking for?

Ask Custom Question

What is the theory of natural monopoly? Describe the main federal regulatory commissions? What is the new social regulation?

Purchase this Solution
Solution Summary

What is the theory of natural monopoly? Describe the main federal regulatory commissions? What is the new social regulation?

Solution Preview

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 ...

Purchase this Solution
Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

View More Free Quizzes
Related BrainMass Solutions

  • Monopolistic competition

    However the perception of what constitutes a natural monopoly is now changing - in part because of the impact of new technology in reducing traditional barriers to entry within markets.

  • Natural Monopoly: Privatization and Regulatory Policies

    If it is privatized, what kind of regulatory policies could the government follow, and what impact might they have on the firm?

  • Natural monopoly examples

    228715 Natural monopoly examples Can you help me get started with this assignment? What is natural monopoly? Can you give some examples for natural monopoly?

  • natural monopoly

    187973 Natural monopoly A function of government is to regulate "natural monopolies." Explain what is a natural monopoly and why it requires government regulation.

  • Natural monopoly

    396698 Define a natural monopoly. Explain what natural monopoly is in terms of the relationship between cost curves and the demand curve. If the market is left to itself, what price and output will result?

  • Natural Monopoly Problem

    Natural Monopoly: example (telecommunications company) What is a natural monopoly and what has happened to natural monopolies in recent years? A natural monopoly is a special type of monopoly.

  • Natural monopoly and the cost and demand curve

    289870 Natural monopoly and the cost and demand curve Explain what natural monopoly is in terms of the relationship between cost curves and the demand curve. If the market is left to itself, what price and output will result?

  • Explaining Monopoly Markets

    Some of the characteristics of monopoly apply to the firm. A monopoly is a firm that is the sole seller of a product without close substitutes. Piedmont Natural Gas is not the sole natural gas seller in Tennessee.

  • Monopoly, Oligopoly, Cartel and OPEC

    The game theory and the purpose of OPEC is also explained, including a discussion about what has happened to oil prices over the past five years and if OPEC will take over the next year.

View More Related Solutions