Natural monopolies are permitted when one firm can provide a good or service for less money than any potential rival, but they are frequently very tightly controlled to safeguard consumers.
A monopoly in economics is naturally characterized as one that results from a market condition with extraordinarily high fixed costs or challenging entry barriers for startups in special business or offering consumer services.
Because there is only one most effective firm whose supply satisfies the demand in the market effectively, a natural monopoly exists. The power sector is one illustration.
Therefore, It applies to markets where it is advantageous to supply a product or service by a single business rather than by several.
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