Question: What is a natural monopoly? Why does electric power distribution or local telephone service have the characteristics of a natural monopoly? Why might this be

What is a "natural monopoly"? Why does electric power distribution or local telephone service have the characteristics of a natural monopoly? Why might this be less true for electric power generation or long-distance telephone service?

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A natural monopoly is a type of monopoly that exists when extremely high fixed costs of distribution ... View full answer

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