Economies of scale tend to create natural monopolies.

Name: Economies of scale tend to create natural monopolies.
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Economies of scale refer to the cost advantages that companies experience as they increase production levels. This often leads to larger companies being able to produce goods or provide services at a lower cost than smaller competitors. As a result, these larger companies may be able to drive smaller competitors out of the market and become natural monopolies.

Economies of Scale Tend to Create Natural Monopolies