The Myth Of Natural Monopoly Analysis

The Title of the Article is “The Myth of Natural Monopoly” by Thomas J. DiLorenzo. According to Mr. DiLorenzo that Public Utilities are Governmental Franchise Monopolies because they are thought to be Natural Monopolies. When production technology that is high fixed cost, causes long-run average total costs to decline as output expands. Natural Monopoly is mostly run by the government, which is single provider of services or products in the community. In terms of prices it has low cost. It is very convenient in the consumers.
The Article shows the evolution of Monopoly. Economist of different decades has views and beliefs which were used and implemented by the Legislative/Government. Competition in the market is stiff in many companies. …show more content…
I’m very impressing about the author’s research because of his work, he give us information about the influential Economist that has a great contribution in the History. Which the Government was implementing to maintain or control /regulated the essential services at a lower cost .And they also based their policies to justify a goods and services to consider as monopolies. It is well research because the sources of data were reliable and helps in his article. And also very useful tool for the instructors, students and companies as well the researchers to base this as a reference in his/her case studies.
The author has a fair view about the topic “The Myth of Natural Monopoly”, because he explained and presents different views of Economist. Even there is an argument about competition because of the rivalry present in the market.
I’m interested in this article because it allows us to understand how and when Natural Monopolies originated, it shows us the History how it started and who are the influential people who are brilliant in the world of …show more content…
Monopoly for me is better in Public Utilities because prices are regulated at low cost. This is beneficial to the community. I agreed in the statement of Mr. Horace M. Gray in the part of conclusions of the article, because it is very true that many people in different countries, really opposed in the system of Monopoly, because of the reason that only one or single company buy and sells of goods which he control the prices. And in the other part of it, because of intensive studies about competition and monopoly, not all of it is disadvantages, but some are beneficial to us. And this is good to the essential providers like electricity , water and many more, which the government imposed payments in a lower prices not like private sectors they have high prices in their services.Government has the capacity to operate a longer period of time. And subsidies the cost of it.People pay for the taxes and it should be used in providing good services. Consumers will enjoy the benefits and to live a better life in the