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Case 1 is about the concept of a “natural monopoly”. Throughout this course, the concept of a “Natural Monopoly” will be raised. Using your textbook, the Internet or any other source you may have, research “Natural Monopoly”. Write a 2-3 page paper describing what a “Natural Monopoly” is and whether you think the government should treat telephone, cable or broadcasting companies as “Natural Monopolies”.
Start your paper with your definition of “Natural Monopoly”. Use the definition given in our text. Then, start with the telephone industry…does it fit the definition…what aspect of the industry indicate that it is a natural monopoly? Are there aspects that indicate that it is not? Next, follow the same format with the cable industry..what aspect of the industry indicate that it is a natural monopoly? Are there aspects that indicate that it is not? Next address the broadcasting industry. What aspect of the industry indicate that it is a natural monopoly? Are there aspects that indicate that it is not?
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