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Explain that the main characteristics of a natural monopoly (15)

A natural monopoly is a market situation where a monopolist has overwhelming cost
advantage. It exists when there is great scope for economies of scale to be exploited
ever a very large range of output, which allows that dominant producer…

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higher than average revenue and government subsidies from example would be
required for the service to produce at least normal profit. Bus services in rural
areas are often subsidized by the government in order for them to be allocatively
the efficient as they would not otherwise be operated.

Although a…

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