Note: In buying gas for domestic use, there is competition. On the one hand, this is more competition, but on the other hand, there is duplication. However, some cities do have multiple bus services. Even on a busy route between two towns, it might be inefficient to have two bus companies competing over the same route and offering the same peak and off-peak services. There are high fixed costs, but more importantly issues of practicality.
– The most logical number of bus companies within a town is one. Bus services in one particular region.The fixed costs are not particularly high, but the dominant firm benefits from network economies, improved information, lower average prices and In some cities, a product like Uber becomes ubiquitous for that segment of private taxi hire via an app. There are very high fixed costs associated with aeroplane manufacturing, but with the global industry, two main producers can be supported. Aeroplane manufacture – At the moment, this is a duopoly so it is not a natural monopoly, but it is close.National fibre-optic broadband network.Therefore, the optimal number of firms in the industry will be one (one firm producing all 10,000 units).The firms would have average costs of £17. If there were three firms producing 3,000 units.If a firm produces 10,000 units, it will get the lowest possible average costs – £9.
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