Answer to Question #69932 in Microeconomics for Mamta Tripathi

Question

Do you think that there should be monopoly with regards to various basic necessities like water and electricity in Nepal. Give reason.

Answer 1

There should be monopoly with regards to various basic necessities like water and electricity in Nepal only in cases if there is natural monopoly in that markets and another producers doesn't exist. But if there are several competitive producers, then monopoly is inefficient.