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Define and give example of nature monopolies explain why they are allowed to exist in our free market system?

Respuesta :

Definition:

A natural monopoly is created when a player in the market grows capable of offering the best service at a price its other competitors cannot.

Examples:

The electricity supply boards and the railway boards run by the government.

Following are the reasons why such natural monopolies are allowed to exist in the free market system:

  • They offer affordability to the general public.
  • They function according to the convenience of the public.
  • They dispense facilities that are not offered by anyone else at the same price.

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