A natural monopoly exists where a single large firm,such as a utility,is more efficient than several small ones.

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The government intervenes to thwart anticompetitive behaviors throughout the marketplace.Historically,the primary concern in this area was how to deal with the so-called natural monopoly where a single large firm,such as a utility,was more efficient (a natural monopoly) than several small ones.Today,attention in the monopoly area is largely directed to anticompetitive conduct such as price fixing and abuse of market dominance that results in a reduction of open,efficient competition.

A Natural Monopoly Exists Where a Single Large Firm,such as a Utility,is