Customers are most likely buying from a natural monopoly when they purchase

Question

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A natural monopoly occurs in an industry where a single firm can supply a good or service to an entire market at a lower cost than two or more firms could, often due to high fixed costs or unique resource control. The local water company fits this description, as it is typically more efficient for one company to manage the infrastructure for water supply due to the high costs of pipes and systems needed to deliver water to homes.

Customers Are Most Likely Buying from a Natural Monopoly When