Natural Monopoly Examples

As per Wikipedia, "natural monopoly" is defined as "an industry is said to be a natural monopoly if one firm can produce a desired output at a lower social cost than two or more firms—that is, there are economies of scale in social costs. Unlike in the ordinary understanding of a monopoly, a natural monopoly situation does not mean that only one firm is providing a particular kind of good or service. Rather it is the assertion about an industry, that multiple firms providing a good or service is less efficient (more costly to a nation or economy) than would be the case if a single firm provided a good or service. There may, or may not be, a single supplier in such an industry. This is a normative claim which is used to justify the creation of statutory monopolies, where government prohibits competition by law. Examples of claimed natural monopolies include
Too often a competitor will contact a company such as Verizon in order to rent out the lines that they have laid down in order for them to provide the same service to a client. This mostly occurs with companies needing to run a T1 connection into a building. It is my belief that the backbone technology to provide telephone service to a home or business does not differ from one company to another. This is why telephone companies cannot be considered a natural monopoly. Nor can a broadcasting company be considered a natural monopoly. Even if we were to take the type of programs broadcasting companies offer there would be a competing company in that arena. Lets consider the following areas news, movies and cartoons; just to name a few currently in the news arena your choices are CNN, MSNBC, Fox News and BBC as for movies HBO, Cinemax, The Movie Channel and Showtime and cartoons can be seen on Cartoon Network and Cartoon Disney therefore completely eliminating the possibility of the broadcasting being considered as a natural