Which of the following statements are true regarding natural monopolies? Select all that apply.

A natural monopoly occurs when a single company can supply a product or service to an entire market at a lower cost than multiple companies could. This usually happens in industries where high fixed costs are involved, such as water or electricity distribution, making it inefficient for many companies to compete. For example, if two companies tried to build separate water pipelines to the same area, the costs would be much higher than if only one company built the pipeline. Because of this, governments often regulate natural monopolies to ensure they provide fair prices and services to consumers. Therefore, it is true that natural monopolies can lead to lower prices and more efficient service when managed properly.