Which of the following is characteristic of a regulated natural monopoly?

A) extensive economies of scale
B) the wasteful duplication of capital facilities in the event of competition
C) the provision of an essential service
D) all of these

Natural Monopoly

is a situation where a single firm can supply a product or service to an entire market more efficiently than could multiple competing firms, often due to high fixed costs.

Economies of Scale

Refers to the cost advantages that enterprises obtain due to their scale of operation, leading to a reduction in per-unit cost.

Capital Facilities

Physical assets such as buildings, machinery, and equipment used in the production of goods and services.