natural monopoly


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natural monopoly

A monopoly that develops because of the unique nature of a business. For example, water supply is often regarded as a natural monopoly because it would be prohibitively expensive and wasteful to build competing distribution infrastructure.
References in periodicals archive ?
This natural monopoly is a private outfit run by an international corporation, with interests in the United States as well as the UK.
ISA's low business risk is supported by regulated revenue as a natural monopoly in the countries where it operates.
In the electricity distribution and supply market, the acquired group has a natural monopoly position for the territory defined in its licenses to carry out these activities.
Slowing inflationary processes is facilitated by a stable price situation in commodity markets, as well as the ongoing policy to regulate prices for natural monopoly services.
"Water is the most natural monopoly and should be in public hands."
GGU is a privately-owned company, which benefits from a natural monopoly that supplies water and provides wastewater services through its wholly owned subsidiaries to 1.4m people (approximately one third of Georgia's total population) in Tbilisi, Mtskheta and Rustavi.
Whatever the merits of treating electricity as a natural monopoly in the past, jurisdictions like Texas have shown that model is, at best, no longer necessary.
Because natural gas distribution requires extensive infrastructure investment, it is a natural monopoly that is regulated to ensure that customers can purchase the gas at a fair price while providing utility investors with adequate returns.
Natural monopoly is an economic threat that the US simply hasn't had to cope with very much in the past, and policymakers don't have good counter measures available.
(52) This economic phenomenon is called a natural monopoly. (53) Natural monopolies occur when an industry has high fixed costs and marginal costs continue to drop as production increases.
The MPs are calling for the telecoms giant to be split from its Openreach subsidiary to end its "natural monopoly" over the nation's broadband infrastructure, amid claims 5.7m customers, especially in rural locations, have internet speeds so low they break regulations.