Natural Monopolies
While in the single-output case, economies of scale are a sufficient condition for the verification of a natural monopoly, in the multi-output case, they are neither necessary nor sufficient. Economies of scope are, however, a necessary condition.
As a matter of simplification, it is generally accepted that, should economies of scale and of scope both apply, as well as sunk costs or other entry barriers, then markets may have monopoly features.
Read more about this topic: Economies Of Scope
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“In my state, on the basis of the separate but equal doctrine, we have made enormous strides over the years in the education of both races. Personally, I think it would have been sounder judgment to allow that progress to continue through the process of natural evolution. However, there is no point crying about spilt milk.”
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