Question

A defining characteristic of a natural monopoly is that

Answer 1

The word monopoly has been derived from the combination of two words i.e., ‘Mono’ and ‘Poly’. Mono refers to a single and poly to control.
1. One Seller and Large Number of Buyers:
The monopolist’s firm is the only firm; it is an industry. But the number of buyers is assumed to be large.
2. No Close Substitutes:
There shall not be any close substitutes for the product sold by the monopolist. The cross elasticity of demand between the product of the monopolist and others must be negligible or zero.

3. Difficulty of Entry of New 
There are either natural or artificial restrictions on the entry of firms into the industry, even when the firm is making abnormal profits.
4. Monopoly is also an Industry:
Under monopoly there is only one firm which constitutes the industry. Difference between firm and industry comes to an end.

5. Price Maker:

Under monopoly, monopolist has full control over the supply of the commodity. But due to large number of buyers, demand of any one buyer constitutes an infinitely small part of the total demand. Therefore, buyers have to pay the price fixed by the monopolist.
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Answer 2

The economies of scale over the relevant range of output.

Explanation:

• A natural monopoly is when a single firm supplies the product to an entry market.  

• The monopolies are price setters and have very high fixed costs example of these monopolies includes the gas network, electricity grid, railway infrastructures, etc.

• They thus don't have any real competition and represent barriers to market entry.

• Can take the form of government agencies to keep regulation such as energy and water. They have low marginal costs due to low investments.

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• brainly.in/question/6612817 answered by  muskan5453.