Question

which statement is the best definition of a natural monopoly? it is a monopoly that only relates to the use and distribution of water, coal, and other natural resources. it happens when one business can provide a product at a cheaper cost than two or more businesses can. it is a monopoly that cannot be controlled by the government and exists outside any form of regulation. it happens when one business buys out others to dominate a market and control the creation of a product.

Explanation:

A natural monopoly occurs when economies of scale are so large that one firm can produce the entire output of the market at a lower cost than two or more firms. This is due to high fixed - costs and low marginal costs. The option stating that one business can provide a product at a cheaper cost than two or more businesses can is the correct definition.

Answer:

It happens when one business can provide a product at a cheaper cost than two or more businesses can.