The best way to address a natural monopoly without dismantling the economies of scale is

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Regulation is the best way to address a natural monopoly without dismantling the economies of scale. Natural monopolies have high fixed costs such as infrastructure, which results in lower average costs of production as more output is produced. However, this means that a single firm is able to supply the entire market at a lower cost than any potential competitors can, making it difficult for new firms to enter the market. As a result, natural monopolies can abuse their market power by charging excessive prices or providing poor quality services. Regulation can help ensure that natural monopolies do not abuse their market power by setting price caps, quality standards, and other rules to protect consumers while allowing the firm to continue enjoying economies of scale.

The Best Way to Address a Natural Monopoly Without Dismantling