Natural monopolies can develop due to in this case, breaking up a monopolist may lead to higher due to inefficiency. instead, governments can seek to remove the output inefficiency of a monopoly by capping prices at a level beneficial for but not for

high fixed costs in economies of scale

abuse of power

consumers and stakeholder

monopolist

Explanation:

When the most efficient structure for a market is a monopoly, that is, we are faced with a natural monopoly, or when, by economic policy, the state wants to favor the existence of a company that runs a monopoly in a specific area, the ideal will be to reduce the monopolist power to the minimum in which it is profitable to be in the market. In this way the state tries, intervening in the market, to alleviate the abuse of the monopolist's market power for the benefit of consumers and stakeholders in general.

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