Natural monopoly
- Created by: meloakes
- Created on: 29-03-15 11:43
View mindmap
- Fixed costs are very high
- Falling LRAC due to economies of scale
- Natural monopoly: Where a monopolist has an overwhelming cost advantage
- Supernormal profits. P1 and Q1
- If it was competitive then it would require subsidy. P2 and Q2
- Natural monopoly: Where a monopolist has an overwhelming cost advantage
- Natural monopoly: Where a monopolist has an overwhelming cost advantage
- Supernormal profits. P1 and Q1
- If it was competitive then it would require subsidy. P2 and Q2
- Falling LRAC due to economies of scale
Comments
No comments have yet been made