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What is the concept of minimum efficient scale

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Please give a thorough answer explaining of the concept MES and the question below. For the second portion, please discuss how the concept of MES can be used to support government regulations support to limit market competition in the utility industry by provide examples discussing how natural monopolies such as local utility companies are in fact more efficient with one producer dominating the industry and why more firms/producers can actually drive up cost and cause inefficiency in the market thus hurting the consumer. Thank you.

Here is the Question:

What is the concept of minimum efficient scale? Explain how the concept of Minimum Efficient Scale can be used to support regulations to limit market competition in the utility industry.

Reference no: EM131249657

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