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snow_tiger [21]
3 years ago
5

Define and give example of nature monopolies explain why they are allowed to exist in our free market system?

Geography
1 answer:
fenix001 [56]3 years ago
6 0
<h3><u>Definition:</u> </h3>

A natural monopoly is created when a player in the market grows capable of offering the best service at a price its other competitors cannot.

<h3><u>Examples:</u> </h3>

The electricity supply boards and the railway boards run by the government.

<u>Following are the reasons why such natural monopolies are allowed to exist in the free market system: </u>

  • They offer affordability to the general public.
  • They function according to the convenience of the public.
  • They dispense facilities that are not offered by anyone else at the same price.
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