Natural monopolies are monopolies that are based on

A) patents.
B) control over a strategic natural resource.
C) extensive economies of scale in production.
D) copyrights.

Natural Monopolies

Markets or industries where the production or provision of goods and services is most efficiently carried out by a single provider due to high fixed or startup costs.

Economies of Scale

Economic concept describing the cost advantage that arises with increased output of a product, where the average cost per unit decreases as production scales up.

Production

The process or activity of creating goods and services through the combination of labor, capital, and natural resources.