ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A natural monopoly is a type of monopoly that arises due to unique circumstances where high start-up costs and significant economies of scale lead to only one firm being able to efficiently provide the service in a certain territory.

Detailed explanation-2: -A natural monopoly is a market that runs most efficiently when one large firm provides all of the output. Sometimes the development of a new technology can destroy a natural monopoly. A government monopoly is a monopoly created by the government.

Detailed explanation-3: -Market that runs most efficiently when one large firm supplies all of the output (NIPSCO for example.) Natural monopoly.

Detailed explanation-4: -A natural monopoly is a market where a single seller can provide the output because of its size. A natural monopolist can produce the entire output for the market at a cost lower than what it would be if there were multiple firms operating in the market.