Grade Booster student workshops are back in cinemas for 2022. Learn more
In this study note we explore the key concept of natural monopoly.
What is a natural monopoly?
For a natural monopoly the long-run average cost curve (LRAC) falls continuously over a large range of output. The result may be that there is only room in a market for one firm to fully exploit the economies of scale that are available and therefore achieve productive efficiency.
Evaluation Skills: Natural Monopoly Revision Video
Boston House,
214 High Street,
Boston Spa,
West Yorkshire,
LS23 6AD
Tel: +44 0844 800 0085
© 2021 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.