Respuesta :
Natural monopoly is type of monopoly when only one firm dominates the industry. The reasons for natural monopoly are extremely high fixed costs of distribution. These requirements are exist for example when large-scale infrastructure is required to ensure supply. Examples for natural monopolies are:
railway lines
electric companies
fixed-line telephone companies
All of them in order to give the service have extremely high costs and requirements for infrastructure.
railway lines
electric companies
fixed-line telephone companies
All of them in order to give the service have extremely high costs and requirements for infrastructure.
In the economy, a natural monopoly is the type of market structure where only one firm dominates the entire industry. The natural monopoly occurs when in a particular industry the fixed cost is too high for its distribution and execution. Thus, in the larger market scale where the infrastructure is of high-cost monopoly works more for better supply.
The examples of natural monopolies are as follows:
- railway lines
- electric companies
- fixed-line telephone companies
These industries incur high fixed costs for their infrastructure. The railway lines, the electric companies, and fixed-line telephone companies require extremely high costs and infrastructure. Therefore, it is not possible for private companies to enter into these industries.
To know more about natural monopolies, refer to the link:
https://brainly.com/question/2182889