Question:
What are Natural Monopolies and why do they occur?
Author: eric_galvaoAnswer:
-Industries when the Fixed Costs are High and Huge Economies of Scale can develop tend to lead to Monopolies developing. -If more than 1 Firm existed, then they’d all have the High Fixed Costs which would affect the Consumer -Monopolies may be more Efficient than Competition. (Take Water. What’s the point of several Firms laying Separate Pipes?)
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