BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -A natural monopoly is a kind of monopoly that arises due to natural market forces. It often occurs in industries where capital costs are predominate, creating economies of big-scale concerning the size of the market. Examples of the natural monopoly include public utilities, such as water services and electricity.

Detailed explanation-2: -Types of Natural Monopolies For example, the utility industry is a natural monopoly. The utility monopolies provide water, sewer services, electricity transmission, and energy distribution such as retail natural gas transmission to cities and towns across the country.

Detailed explanation-3: -Natural Monopoly Examples Some examples of industries considered to be natural monopolies include: Telecommunications (Telecoms) Utilities and Energy Sector (Electric Power Supply and Grids) Oil and Gas (O&G)

Detailed explanation-4: -Natural monopolies are usually set up by governments for the provision of necessities such as energy and water. Utilities involve high start-up costs and require expensive infrastructure investment. Hence, natural monopolies for utilities are easily maintained by governments.

Detailed explanation-5: -Public utilities: gas, electric, water, cable TV, and local telephone service companies, are often pure monopolies.