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Natural Monopoly
(redirected from Natural monopolies)

    Also found in: Wikipedia 0.01 sec.
Natural Monopoly
A situation in which the barriers to entry for an industry or product are so high that it is not profitable for a second company to make an attempt. For example, an area may have only one utility company because it is prohibitively expensive to start another one. Governments generally regulate profits for natural monopolies to protect consumers.
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The time has come for natural monopolies to be under public control and for the City spivs and speculators to be shown the door.
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He calls for greater attention to market-based reform in health, education and natural monopolies, while stressing the need for civil liberties and a free press as the basis for economic growth.
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The proposal overhauls the existing system (in place for years) that regulates the electric utilities as natural monopolies, changing it to one that is performance-based and permits utility competition.
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