Provision of electricity is a natural monopoly but after a certain point it becomes a private good.

Name: Provision of electricity is a natural monopoly but after a certain point it becomes a private good.
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Question

Quizplus · Accepted Answer

The provision of electricity requires significant fixed costs such as building power plants and distribution networks which make it a natural monopoly. However, once these costs are recovered, it becomes a private good and can be produced and sold by multiple firms in a competitive market.

Provision of Electricity Is a Natural Monopoly but After a Certain