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What Are Natural Monopolies

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There are several conditions for a monopoly to be successful such as: only one seller, high barriers to market entry, and only one type of product is produced. A natural monopoly exists when average costs continuously fall as the company gets larger. An electric company, like Georgia Power, is a classic example of a natural monopoly. More classic examples of natural monopolies are: natural gas, electric power, trash collection, cable television, and lastly Microsoft. Natural monopolies are regulated by the government. Because the electric company is a monopoly, consumers are unresponsive to price changes; if a company doubled the price of electricity, people would have to pay it because they have no one else to buy it from. Only strict government
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