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Economics - Financial Markets
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An example of a natural monopoly product is a hair salon a board game airplane manufacturing water service
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D. Water services.
An example of a natural monopoly is the company that provides the water we drink out of the kitchen faucet. To have two, three, or four companies all lay pipes throughout the city and into every home would be inefficient and a waste of money. All of these additional costs from companies to lay the proper infrastructure, have their own treatment facilities, and hire their own staff would certainly raise the price you pay for water services. This is a classic situation where lower average costs are created when there is only one provider -Wiki.
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