Natural Monopoly / 자연독점

Average cost is the ratio of costs to the number of units being 

produced, sometimes called the per-unit cost

Economies of scale occur when long-run average cost can be reduced

simply by increasing the firm’s size and producing more of the produ-ct

If General Motors reduce production to 1000 cars per year 

(compared to 3000000 now), 
assembly lines would be out of the question

Certain production techniques allow to reduce average costs 

drastically IF the firm is large enough

Eventually, however the long-run average cost will stop decreasing 

shooting up

After the output level Q0 is reached, average costs start going up 

and we are entering the area of the diseconomies of scale

Firm simply becomes too large to be effectively managed

Specialization of labor in large firms leads to worker boredom

If the market can only support one efficient firm, we are talking 

about natural monopoly

The society would not be better if many small firms were together 

producing Q0 units of output!

상품 특성상 여러기업이 생산하는 비용보다 한 기업이 독점적으로 생산할 때 비용이 적게 들기 때문에 자연스럽게  생겨난 독점 시장이다. 

" 규모의 경제 " 의 작용으로 생산을 많이 할 수록 평균단가가 낮아짐 

     References 

• Presentations ( Pr. Repkine ) 
• https://cafe.naver.com/koreahrdacademy/3248
• https://blog.naver.com/kcw767/30044745916