Describe an example of a real-world industry or market that would be considered by economists to be a natural monopoly.
- What characteristics of the industry make it a monopoly?
- What is the impact of the monopoly power on its customers?
- Why might government want to regulate natural monopolies?
- How might such regulation be structured?
For this discussion question, think of your water, electric, and gas. Do you get those products from multiple producers or one? How do they operate? Aren’t prices for those needed products relatively cheap considering?