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Public utilities are known as natural monopolies because they have economies of scale in the extreme case. More than one. Firm would be inefficient because the maze of pipes or wires that would result if there were competition among water companies. Or Ca
.The utility called natural monopoly, because they have economies of scale in extreme cases, more than one company, will not be effective because the maze of pipes or cables to result if there is competition between. Water companies or corporations.Copyright or ownership in the necessary resources. In the case of the utility products exclusively naturally due to the economies of scale of the business is complex and time-consuming. If the business in this industry, there are more than one company.
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