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What does Natural Monopoly mean?

A type of monopoly that exists as a result of the high fixed costs or startup costs of operating a business in a specific industry.

Natural Monopoly in a sentence
Utility companies are often a Natural Monopoly because the cost of building a second set of power lines is prohibitively high.

Natural Monopoly in German, French, Spanish and Italian

German
Natürliches Monopol

Marktsituation, in der ein Anbieter die Nachfrage am kostengünstigsten decken kann.

French
Monopole naturel

Monopole résultant de coûts fixes si élevés qu'un seul offreur est efficace.

Spanish
Monopolio natural

Situación donde una sola empresa puede abastecer a todo el mercado con costes menores que si hubiera competencia.

Italian
Monopolio naturale

Monopolio che sorge quando un'unica impresa può produrre a costi inferiori rispetto a una pluralità di imprese.

Synonyms and opposites for Natural Monopoly

  • Synonym Structural monopoly

More Economics terms

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