With a natural monopoly, a potentially insurmountable barrier to entry can be the

Question

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A natural monopoly occurs when one firm can produce the entire output for a good or service at a lower cost than any potential competitors due to economies of scale, resulting in high fixed costs. This creates a barrier to entry since new firms would have to spend a large amount of money to build the infrastructure and production facilities required to compete with the established firm. The other choices (A, B, and D) do not necessarily apply to natural monopolies.

With a Natural Monopoly, a Potentially Insurmountable Barrier to Entry