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⏲ Duration: 1 min 13 sec
✓ Published: 16-Nov-2013
✓ Published: 16-Nov-2013
Description:
Jodi Beggs explains the economic conditions that leads to a natural monopoly. Companies that have high fixed cost but low marginal cost have the advantage that as they produce more units, their average total cost declines rapidly. Companies like this can be so efficient that they become natural monopolies.
Jodi Beggs explains the economic conditions that leads to a natural monopoly. Companies that have high fixed cost but low marginal cost have the advantage that as they produce more units, their average total cost declines rapidly. Companies like this can be so efficient that they become natural monopolies.
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