Study Notes
Explaining Natural Monopoly
- Level:
- A-Level, IB
- Board:
- AQA, Edexcel, OCR, IB, Eduqas, WJEC
Last updated 24 Mar 2019
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
You might also like
Internal and External Economies of Scale - a quick fire quiz
21st August 2015
Monopolistic Competition
Teaching PowerPoints
Arguments against Price Discrimination
Topic Videos
Dynamic Efficiency: Google Home v Amazon Echo
1st December 2016
Dynamic Efficiency - Clothes that Grow with your Child
7th September 2017
Lifting productivity growth via immigration
2nd May 2018
Dynamic efficiency - the search for better batteries
9th April 2021
Why Canadians are angry with their biggest supermarket
8th June 2024
Daily Email Updates
Subscribe to our daily digest and get the day’s content delivered fresh to your inbox every morning at 7am.
Signup for emails