sooneandpuffy sooneandpuffy

20-07-2017
Business

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Is the natural gas pipelines a natural monopoly or oligopoly?

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Erudite1 Erudite1

27-07-2017

Natural gas pipelines is a NATURAL MONOPOLY. A natural monopoly occurs when an extremely high fixed costs of distribution of a particular product exist. Efficiency in this market is maintained by discouraging competition; encouraging competition will leads to loss of efficiency due to duplication of fixed factors.

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