Microeconomics Question. Please do not use any answers already used from Course Hero. In particular Railroad is already been used.
Describe an example of a real-world industry or market that would be considered by economists to be a natural monopoly.
What characteristics of the industry make it a monopoly?
What is the impact of the monopoly power on its customers?
Why might government want to regulate natural monopolies?
How might such regulation be structured?
Please be sure to answer the Part below as this is what the professor is looking for.
One thing that you will want to cover in your postings is the effect of monopolies on economic surplus. The only economics argument you could have for support regulation would deal with economic surplus. You will also want to clearly define a natural monopoly.