Question

Is the south African post office an artificial Monopoly or natural Monopoly

Answer 1

Answer:

example of a natural monopoly is tap water. ... It makes sense to have just one company providing a network of water pipes and sewers because there are very high capital costs involved in setting up a national network of pipes and sewage systems.

Answer 2

Natural Monopoly

Explanation

In South African post office is an natural monopoly.

• This monopoly comes due to different situation that comes when there is high start up costs to be established.
• It also have barriers  to other firms to enter.
• It arise when the is multiple firms are also not capable to beat one firm which is more efficient than them.
• The one firm only is enough capable to beat the other firms and also have costs higher than the cost of other firms.