A natural monopoly is one that arises from

Question

Quizplus · Accepted Answer

A natural monopoly arises from economies of scale, in which the average cost of production decreases as the quantity of output increases. This makes it difficult for smaller firms to compete with the larger firm, which can produce at a lower cost due to its size and infrastructure. Patent and copyright laws do not necessarily lead to a natural monopoly, and ownership of a natural resource may lead to a monopoly but not necessarily a natural one.

A Natural Monopoly Is One That Arises from