econ._ch_14

econ._ch_14 - product 2.3 A desigination by the gov that a...

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Ch. 14 Nancy Crawley 2.1- 1. Gov. blocks entry of more than one formation market, one firm has control of resources necessary to produce a good, and there are important network externalities supplying the good or service, and economies of scale are so large that one firm has a natural monopoly. 2.2- They grant them because they want the company to spend money on research of the
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Unformatted text preview: product. 2.3- A desigination by the gov. that a firm is the only legal provider of a good or service. No. 2.4- The monopoly develops automatically in this market. 2.5- Yes, it’s a natural monopoly, because its one service serving an entire country. More businesses would open and prices would begin to rise....
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