Generally, monopolies are characterized  by high initial investment costs and high fix costs. A natural monopoly has a different connotation in contrast to the prevailing understanding of a monopoly. The term “natural monopoly” simply refers to the cost structure of a firm whereas the term monopoly is associated with market power and market share in particular. Within a natural monopoly situation, it is not necessarily the case that only one firm is providing a particular kind of good or service. It is rather the assertion about an industry, that the provision of a public good by multiple firms is inefficient. These cost structures arise in particular within network facilities which are not replicable. As a consequence thereof, natural monopolies can be observed in every modern economy.