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Public utilities are an example of a pure or natural monopoly. A pure or natural monopoly is a single firm in an industry. This is the most effective way to provide very important goods and services. An example of a public utility monopoly that affects our everyday life is that of SDG&E. They are the only power company in San Diego County and thus they have a monopoly on San Diego. This, however is the kind of monopoly that the government likes to keep running and in operation because they know that we cannot do without for very long. If SDG&E decided to go out of business there would be no power supplier for all of San Diego County...
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