A natural monopoly exists when economies of scale are so large that only a single firm can survive.

Name: A natural monopoly exists when economies of scale are so large that only a single firm can survive.
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A natural monopoly occurs when the cost of production of a good or service is highest when multiple firms produce instead of a single firm due to economies of scale. As a result, only one firm can efficiently produce the good or service and compete in the market.

A Natural Monopoly Exists When Economies of Scale Are So