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Natural Monopoly

   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 Tories and their friends in the City who privatised this natural monopoly are shameless in the face of this great rip-off.
Water company slammed over cuts; ECONOMY TODAY: UTILITIES by The Journal (Newcastle, England)
The firm sees off most competitors, effectively takes over its only serious (and better-funded) rival and proves a natural monopoly.
A eureka moment that changed face of betting by The Racing Post (London, England)
Even if natural monopoly exists, the monopolist's ability to engage in price discrimination means the absence of efficiency losses.
Power communication by Gordon, Richard L. / Regulation
 
 
 
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