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mike asked in Social ScienceEconomics · 2 months ago

How can a Natural Monopoly be good for an economy?

2 Answers

  • Oiy
    Lv 6
    2 months ago

    A natural monopoly means the company has the economies of scale. The enlargement of the market makes it possible to reduce the average cost in the long term so that no one can come in to challenge even in the longer term and without government protection. So for consumers, they will have the best quality products at a reasonable price. That means wellbeing.

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  • 2 months ago

    Because you can't force new players into a market? What do you want to do? Beg people off the street to start a plane manufacturing company to compete with boeing?

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