Unit 9 Discussion

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Q Describe an example of a real-world industry or market that would be considered by economists to be a natural monopoly. 1. What characteristics of the industry make it a monopoly? 2. What is the impact of the monopoly power on its customers? 3. Why might the government want to regulate natural monopolies? 4. How might such regulation be structured?

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Natural monopoly is considered to be the form of monopoly where there lies existence of only one firm and other firms cannot easily make an entry into this market structure. This is

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