The old concept in economics of "natural" monopoly refers to an industry where the technological advantages of large-scale production precludes efficient competition among smaller companies.
CHICAGO: The old concept in economics of "natural" monopoly refers to an industry where the technological advantages of large-scale production precludes efficient competition among smaller companies. The alleged superiority of bigness has been used in many, if not most, countries to justify government ownership of many industries because government monopolies are supposed to better look out for the public interest than private monopolies do. Although claims about natural monopoly continue to influence public policies and academic discussions, this concept has become largely irrelevant to the dynamic economies of the modern world.
CHICAGO: The old concept in economics of "natural" monopoly refers to an industry where the technological advantages of large-scale production precludes efficient competition among smaller companies. The alleged superiority of bigness has been used in many, if not most, countries to justify government ownership of many industries because government monopolies are supposed to better look out for the public interest than private monopolies do. Although claims about natural monopoly continue to influence public policies and academic discussions, this concept has become largely irrelevant to the dynamic economies of the modern world.