4.1.5.6 Natural Monopolies

0.0(0)
Studied by 0 people
call kaiCall Kai
learnLearn
examPractice Test
spaced repetitionSpaced Repetition
heart puzzleMatch
flashcardsFlashcards
GameKnowt Play
Card Sorting

1/6

encourage image

There's no tags or description

Looks like no tags are added yet.

Last updated 10:16 AM on 4/15/26
Name
Mastery
Learn
Test
Matching
Spaced
Call with Kai

No analytics yet

Send a link to your students to track their progress

7 Terms

1
New cards

natural monopoly

occurs when the most efficient number of firms in the industry is one

2
New cards

very high FC, vast EofS, High MES, very high barriers to entry

Features of a natural monopoly

3
New cards

impractical to have more than one firm

Because natural monopolies have very high FC, it is:

4
New cards

Minimum Efficient Scale(MES)

lowest point on LRAC

5
New cards

high start up costs

Why do natural monopolies have such high barriers to entry?

6
New cards

Railways, maintenance is expensive(high FC), EofS and high start up costs prevent entry

AO2 for natural monopolies:

7
New cards