A "natural" monopoly occurs because:

Question

Quizplus · Accepted Answer

A "natural" monopoly occurs when the costs to enter a specific business or industry are so high that it is not profitable for more than one company to operate in the market. This can happen, for example, in utility industries where there are significant fixed costs associated with building and maintaining infrastructure. Once a company has made the initial investment, it has a cost advantage over potential competitors, which makes it difficult for new entrants to enter the market and compete. This leads to a situation where one company dominates the market and becomes a natural monopoly.

A "Natural" Monopoly Occurs Because