Based on your understanding of “natural monopolies,” do you think the cable industry today should be considered a natural monopoly? Why or why not? (Based on your reading, research and analysis in the textbook, and other relevant sources)
A natural monopoly is a domination that exist as the cost of producing the product, is lower due to financial system of balance if present just a single producer than if there are several competing producers A natural monopoly happens when one firm has an overwhelming cost advantage over other actual and potential competitors. This generally happens if the firm is the first one in the market (so if they make a new invention and have copyright, patent on it). It also happens in industries with high capital costs.
Yes I think the cable industry is a natural monopoly because of the hige investment that it requires to be successful in the cable industry it is naturally set for large companies. Anytime you have a industry that requires a large investment to become relevant there is a natural monopoly that occurs. For example telephone companies, utility companies, and other large industries that dont truly have room for the average joes of the world.