natural monopoly
Pronunciation
Noun
B2 Upper-intermediate
Quick answer
A market situation in which it is more efficient for a single company to supply an entire market than for several competing companies to do so, usually because of very high setup costs.
Test yourself
Which word fits the gap? "Water utilities are often treated as a _____ because building competing pipe networks would be wasteful."
Answer: natural monopoly
In your own words, what does "natural monopoly" mean?
A market situation in which it is more efficient for a single company to supply an entire market than for several competing companies to do so, usually because of very high setup costs.
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