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Burka [1]
3 years ago
10

Natural monopolies are?

History
2 answers:
damaskus [11]3 years ago
6 0

A natural monopolies are an industry that runs best when one firm produces all the output.

<u>Explanation:</u>

Natural monopoly existence might be due powerful economic factors influencing a specific industry. It usually comes into existence when industries are in need of some unique products or technology.

It also arises when a company understands its monopoly and rises accordingly to dominate the entire industry or when a single company is able to meet all the demands for that unique goods or service in the market. Example for this is tap water.

lina2011 [118]3 years ago
4 0
A natural monopoly is a type of monopoly that exists as a result of the high fixed costs or startup costs of operating a business in a specific industry. Additionally, natural monopolies can arise in industries that require unique raw materials, technology or other similar factors to operate.
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