A natural monopoly is a market in which a single firm:

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A natural monopoly occurs when a single firm can produce the entire quantity of output demanded at a lower cost than multiple firms. This is often due to economies of scale where the cost per unit decreases as the quantity produced increases. As a result, it is not economically efficient to have multiple firms producing the same good or service, and the single firm is able to maintain a monopoly in the market.

A Natural Monopoly Is a Market in Which a Single