Which reason best explains the purpose of natural monopolies?
to avoid surpluses and shortages points
to control prices and avoid surpluses
to ensure efficiency and reliability in production
to reduce competition and control prices
I believe the answer is: To ensure efficiency and reliability in production
In natural monopolies, only one organization exist to control the selling and production of one type of product. Which mean the organization could afford to make amount the product whenever it please since there is no other competitors that the consumers could go to.
Hope this helps!!
to avoid surpluses and shortage...