an industry requiring huge investments in capital and within which duplication of facilities would be wasteful and thus not in the public interest

a monopoly that emerges because of economies of scale

When it is economically or physically impractical (or undesirable) for more than one entity to perform a service in a given market, then the single provider is said to have a natural monopoly. Monopoly industries are regulated in order to protect consumers from collection of excessive profits.

a monopoly that arises in industries where economies of scale are so large that a single firm can supply the entire market without exhausting them

a monopoly where one person or company owns the resource for sale

an industry in which one firm can achieve economies of scale over the entire range of market supply

a situation where for technical or social reasons there cannot be more than one efficient provider of a good

An industry in which the average cost of production reaches a minimum at an output rate large enough to satisfy the entire market, thus competition cannot be sustained and one firm becomes the monopolist.

A monopoly that arises because one firm can meet the entire market demand at a lower price than two or more firms could. (p. 310)

A market or industry in which having only one producer is most efficient because it can meet all of consumers' demand for the product.

A situation where one firm can produce a given level of output at a lower cost than can any combination of multiple firms. Natural monopolies occur in industries that exhibit decreasing average long-run costs with increasing size (economies of scale). Historically, electrical generation has been assumed to be a natural monopoly. This assumption is being questioned in the electrical industry restructuring debate.

when the cost of utility service, such as gas, water or electric service, is minimized to customers if a single enterprise is the only seller in the market.

A market that has high natural barriers to entry (usually because of increasing returns to scale) is referred to as a natural monopoly because such a market has a tendency to become a monopoly. Indeed, in the presence of increasing returns to scale, a market that consists of a single large producer is the most economically efficient. Traditionally, governments have dealt with natural monopolies by granting an official monopoly to a business and introducing regulations placing substantial controls on the behaviors in which that business is allowed to engage. (e.g. what pricing schemes are allowable). Electical power and telecommunications are examples of natural monopolies that have been subject to government regulation. Recently, however, there has been a move in the United States towards deregulation of telecommunications and attempts to restructure markets so that the conditions that produce natural monopolies are eliminated.

where one firm can supply the entire market demand at a lower cost than two or more firms.

A situation that occurs when one firm in an industry can serve the entire market at a lower cost than would be possible if the industry were composed of many smaller firms. Gas and water utilities are two classic examples of natural monopolies. These monopolies must not be left to operate freely; if they are, they can increase prices and profits by restricting their output. Governments prevent such a scenario by regulating utility monopolies or providing utility services themselves.

a monopoly that exists because average costs of production are declining beyond the level of output demanded in the market, thus making entry unprofitable and making it efficient for there to be a single firm

An economic situation where there is only one efficient supplier of a product or service, as when the minimum efficient scale of production is very large

A situation where one firm can produce a given level of output at a lower total cost than can any combination of multiple firms. Natural monopolies occur in industries which exhibit decreasing average long-run costs due to size (economies of scale). According to economic theory, a public monopoly governed by regulation is justified when an industry exhibits natural monopoly characteristics.

A condition where competition would not be expected to develop. For example, the gas distribution function is a natural monopoly because it is extremely unlikely that once a distribution company was established in an area a competing company would enter the same market and construct additional distribution facilities. However, the selling of gas to retail customers is not a natural monopoly because a relatively large number of companies would be able to offer competitive alternatives. [ monopole naturel

exists when the entire market demand can be served at lowest aggregate cost by one supplier due to the nature of the economies of scale available, relative to total market size. Competition in such markets would likely be unsustainable due to the economies available to the incumbent supplier.

A monopoly that arises from the nature of the industry, rather than being imposed by law or resulting from anti-competitive practices.... more on Natural monopoly

A natural monopoly exists when one firm can supply the entire market at a lower per unit cost than could two or more separate firms

A situation in a marketplace that arises in which the economies of scale are such that a single firm is of such an efficient size that it is able to supply the entire market demand.

One producer supplying all of the market at lower costs than many producers could.

In economics, the term natural monopoly is used to refer to two different things. This has been a source of some ambiguity in discussions of "natural monopoly."Baumol, William, J.