After reading the article1

, explain how a ‘Natural Monopoly’ arises:

1. What is the peculiar shape of a natural monopolists average total cost (ATC) curve,

and what is the cause of that unusual shape? Fully explain why this type of ATC curve

is likely to result in a natural monopoly, and draw a contrast between the ATC curve

of a natural monopolist and that of a typical firm in a competitive industry.

2. Discuss the reason why the technology of chip manufacturing may soon drive the

industry to the status of a natural monopoly, and cite evidence from the article that

supports the claim that the industry is moving toward a single producer.

Order your essay today and save 30% with the discount code ESSAYSHELP