A natural monopoly owes its existence to

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A natural monopoly is a market where the total cost of production is minimized when one firm produces the output needed by the entire market. This occurs due to a persistently declining long-run average cost curve as scale increases, which makes it difficult for new firms to enter the market and compete. Control of a key input (A), patents (C), and obtaining quantity discounts from suppliers (D) can create temporary advantages, but they do not necessarily lead to natural monopoly. Increasing marginal returns (D) may help to reduce costs, but they do not necessarily guarantee a declining long-run average cost curve.

A Natural Monopoly Owes Its Existence to