Question

Natural monopolies occur when one producer can meet the market’s entire demand. controls the method of production. is the only one authorized to produce a given product. creates unique products.

Answer 1

Natural monopoly is that type of a monopoly which exists due to the high costs in an industry which are either fixed or is the start up cost.

We may also find that natural monopolies occur when the industry demands unique raw materials and technologies which cannot be obtained by anyone and everyone or which come at a higher cost.