Chocolate Milk Stain Turn white!!!! PLEASE HELP!!!!!!?!
Answers:
A monopoly may be the result of government regulation. The government may decide that it makes economic sense to have a single provider for a good or service such as electrical service. Allowing one firm to satisfy all demand in a geographical area is desirable due to the tremendous economies of scale present in production(1). These firms are called natural monopolies where the market naturally gravitates toward a single firm that can satisfy the entire demand in the range of production characterized by economies of scale.
In the long run, entry of new firms is prohibited in a regulated monopoly to prevent competition. In return for giving one firm a prolonged monopoly status, the government regulates the firm and the monopolist is not allowed to practice monopoly pricing. Instead, regulators impose price controls on the firm that usually are highly correlated with production costs to keep profits at a moderate level...
Source(s):
... Read more @ http://spot.colorado.edu/~kaplan/econ201…
