A regulated monopoly refers to a situation where there is only one firm in a particular industry due to legal barriers or high entry costs, and its prices and operations are subject to government regulation.
Related terms
Natural Monopoly: A natural monopoly occurs when economies of scale allow for only one firm to operate most efficiently in an industry. This often happens in utility industries like water or electricity distribution.
Price Regulation: Price regulation involves government intervention in setting maximum or minimum prices for certain goods or services produced by monopolies or oligopolies.
Antitrust Laws: Antitrust laws are regulations that aim to promote competition and prevent monopolistic practices. They are designed to protect consumers from high prices, limited choices, or unfair business tactics.