Publication: Journal of Economic Education
Volume: Volume 22, No. 2
Issue: Spring 1991
Pages: pp. 179-182
Author(s): Holley H. Ulbrich
Address (Principal Author):
Title: Natural Monopoly in Principles Textbooks: A Pedagogical Note
Abstract: The treatment of natural monopoly in textbooks is inconsistent with the distinction typically made between short- and long-run costs. A solution to the pedagogical problem is to introduce different planning horizons and to discuss the waste associated with costly entry and exit from the industry.