Natural Monopoly
/ˈnætʃrəl məˈnɒpəli/
Definitions
- (n.) A market structure characterized by a single provider due to high fixed costs and significant economies of scale making competition inefficient.
The local water supply is considered a natural monopoly regulated by the government.
Forms
- natural monopoly
- natural monopolies
Related terms
See also
Commentary
Natural monopolies often require regulatory oversight to prevent abuse of monopoly power while ensuring public access.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.