Economics 101: Natural Monopoly | SterlingTerrell.net

Economics 101: Natural Monopoly

What is a natural monopoly?

A Natural Monopoly is a monopoly that grows out of an industry with high barriers to entry.

Take for example, car manufacturers. There are only a handful of them. Why?

Probably because building a car manufacturing plant costs a ton of money.

And not everyone can afford to run out and build one.