Question

2. What is a "natural monopoly" and how has the United States dealt with natural monopolies?

Answer 1

fnsuwey: Natural monopoly rti a manopoly ohich omel ino existence beaure d high ned co&ts or set upcostg of into an industy entering busine eauie Alo natural monopolrs can fer it a Uniqve ra u matenal 8 or tech nology r other unique and Yare Pactor or input In guch ciramstan ce, itis economtally eraient t allos natral m ono Polsto en sure Con sumer avellbeing Therefere governments often encaurage tveh natral monapalis thmgh tegolat oni . erample: leataity otilrtiel requie huge Setup CosSo thele are natral monopolie and te overn ment proteets such a natural menopolig t pavide maximun beneit to ContumerR

Onted stale daaling oth natral manopeli n palt 30ea Couthy uniled State hat a tneifed a substanbal decreale in the 'industries having natural nonofalia The natral monopoly ocay due t hnge invetnent Cost it not egolated poperly tetms Can However abuse the market pourer by charging very hig h ppy Tn reeent year, ithal been obsewed that Competitron i beler than Con Centraton Com petition drives down tk pc of thegood and industry increatel the efficren cy ofan s hat decyeated e noot natral manopolieg County increale efiaen ey and innovaban in an eanomy. There have paan subttantial improvemant in e

3 -technolo gyhat ha inccased the opportunithe fornes firnos topodce ffreiently Thenefore, there is no need for natfural manopolrg to terc are few gectors that have nct towere ex perienCed such an advancement 30 they Sill hare natral menopolry