Allowing a natural monopoly to exist is more efficient than breaking it into several smaller firms.

Question

Quizplus · Accepted Answer

Allowing a natural monopoly to exist can lead to economies of scale and lower costs for consumers. Breaking it into smaller firms can lead to duplication of resources and higher costs that may be passed on to consumers. However, regulation may be necessary to prevent abuse of market power by the natural monopoly.

Allowing a Natural Monopoly to Exist Is More Efficient Than