Economics B A-Level
Natural monopoly
What Natural monopoly means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of Natural monopoly
Check what you remember
Read the wording for your board, then hide it and explain Natural monopoly in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
A market where one firm can supply total demand at lower average cost than two or more firms because of high fixed costs and substantial economies of scale.
Topics that use Natural monopoly
- Business regulation (Pearson Edexcel A-Level)
Related terms
- Asymmetric information and market failure
- Consumer protection
- Consumer protection legislation and standards
- Franchising
- Market power
- Mergers and takeovers
- Anti-competitive practices
- Business costs
Using Natural monopoly in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
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