Natural monopoly in Eurasian economic union: concept, essence, types and areas of activity

The article is devoted to one of the kinds of monopoly ? a natural monopoly. The purpose of the article is to reveal the concept and essence of natural monopoly, its peculiarities and kinds, to identify areas of economic activity in the sphere of natural monopoly. Scientific and practical significance of the research is that the results clarify, supplement and develop conceptual provisions that reveal the content of natural monopoly, various forms of its existence and activity. The definition of the concept "natural monopoly" is given; its essence is revealed. The peculiarities and the specificity of natural monopolies are described. The characteristic of the main features of this kind of a monopoly is given. It is emphasized that one of the peculiarities of natural monopolies is the existence of very high barriers to entry into the industry. The reasons of the emergence and existence of a natural monopoly are revealed. Natural monopolies occur where the competition is impossible or economically inexpedient, that is, where the competition uses the resources of the society less efficiently. Two main types of natural monopolies are considered and analyzed: a) a natural monopoly that has arisen as a result of the presence of unique natural phenomena (climate, natural resources, the rarity of certain raw materials, location); b) the technical and economic monopoly, the occurrence of which is dictated either by technical or economic reasons related to the manifestation of scale. The positive and negative characteristics of a natural monopoly, its pros and cons are identified. The legal duties of subjects of natural monopolies are disclosed. It is concluded that natural monopolies are based either on the unique natural resources or unique complicated technology; that the advantages of natural monopoly can become disadvantages, and vice versa. This form of economic organization is deeply controversial. It is impossible to determine clearly what is prevailing ? pluses or minuses.