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

A natural monopoly occurs when a single company can supply a product or service to an entire market more efficiently than multiple companies could. This usually happens in industries where the fixed costs of setting up the business are very high, such as water supply or electricity. For example, it's often more efficient for one company to build and maintain the infrastructure for delivering water to homes rather than having several companies each build their own pipes. Because of this efficiency, natural monopolies can lead to lower prices for consumers if they are regulated properly. However, without regulation, a natural monopoly might charge higher prices since there is no competition to keep them in check.