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.
Examples are Gas network, Electricity grid
Railway infrastructure.
A natural monopoly poses a difficult challenge for competition policy, because the structure of costs and demand seems to make competition unlikely or costly.
Hope this helped :D
~Melis
Answer:
all in all be willingly to to anything for every individuals welfare
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RIP
TAYLOR'S CONSTANT NEED FOR CONTROL IS A SYMPTOM OF OCD.<span />
Explanation:
The income effect is the impact that a change in the price of a product has on a consumer's real income and consequently on the quantity demanded of that good.
