When one company supplies the entire market for a good or service more cheaply than a combination of smaller firms,it has:

Question

Quizplus · Accepted Answer

A natural monopoly occurs when a single company can supply the entire market for a good or service at a lower cost than a combination of smaller firms due to inherent advantages such as economies of scale. This is different from an oligopoly, which involves a few large firms dominating the market, or monopolistic competition, which involves many small firms offering slightly differentiated products. Pure competition involves many small firms offering identical products.

When One Company Supplies the Entire Market for a Good