Natural monopolies are always beneficial for consumers because they reduce prices through economies of scale.

Natural monopolies occur when a single company can provide a good or service more efficiently than multiple companies due to high fixed costs and low marginal costs. This often leads to lower prices for consumers because the company can produce at a larger scale, spreading out its costs over many units. For example, think about water supply; it is usually cheaper and more efficient for one company to manage the water pipes than for several companies to build their own. However, while natural monopolies can lower prices, they can also lead to problems like poor service or lack of innovation if the company does not face competition. Therefore, while they can be beneficial, it is important to balance their advantages with careful regulation to protect consumers.