A natural monopoly is:

Question

Quizplus · Accepted Answer

A natural monopoly is a market situation in which the economies of scale are so large that they allow one firm to provide the product or service at a lower cost than any potential competitor. As a result, the firm can charge a price that covers its costs and still exclude competitors from the market. However, the product or service is still excludable, meaning that the firm can prevent some people from using it if they don't pay for it. But it is not rival, meaning that one person's use of the product/service does not reduce the quantity available for someone else.

A Natural Monopoly Is