With natural monopolies,consumers may be better off with a monopoly than competition.

Question

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Natural monopolies occur when it is more efficient for one firm to produce and distribute a good or service rather than multiple firms competing. In these situations, having multiple firms would lead to duplication of infrastructure and higher costs for consumers. Therefore, a single firm operating as a monopoly may be better for consumers in terms of pricing and efficiency.

With Natural Monopolies,consumers May Be Better Off with a Monopoly