Price Regulation of Infrastructure Natural Monopoly: Evaluation of It's Effect

In a broad sense infrastructure is reasoned as the whole of economic resources, and from its functioning depends the level of active economical activity. An industry or activity is said to be a natural monopoly if production is most efficiently done by a single firm. So, if the entire demand within a relevant market can be satisfied at lowest cost by one firm rather than by two or more, the market is a natural monopoly. Most of the natural monopolies are public utilities or in other words - infrastructure enterprises. Countries economic activity should be assured by providing infrastructure services. Because some of infrastructure services providing subjects may have natural monopoly features, it's governmental regulation becomes important, seeking to protect customers from the monopoly power. In this paper the price regulation of infrastructure natural monopoly is analyzed, it's effect for customers and economics evaluated.