Characteristics of natural monopoly in tourism management

Monopoly, public welfare, non-selectivity, and some businesses are competitive. The characteristics of natural monopoly include:

1。 Monopoly. Natural monopoly industries are generally industries with obvious economies of scale, that is, the larger the scale, the lower the production cost.

2. Public welfare. Natural monopoly industries mainly provide public services, and their private marginal utility (MPB) is less than social marginal utility (MSB).

3. Non-selectivity. Because the operators of natural monopoly industries are generally unique, these services are not selective to consumers.

4. Some industries are highly competitive. Natural monopoly industries not all businesses have natural monopoly, but some businesses are competitive.