A natural monopoly has small fixed costs,which allows it to produce at lower cost than can potential competitors.

Natural Monopoly

A type of monopoly that arises due to high fixed or start-up costs associated with a business which makes it impractical for more than one firm to produce the same product or service efficiently.

Fixed Costs

Costs that do not vary with the level of production or business activity, such as rent, salaries, and insurance, remaining constant regardless of output.

Competitors

Competitors are businesses or individuals that vie for the same customers or market share in the same industry.