 In specific cases, a monopolistic economic model is more efficient than a perfectly competitive model.This type of firm is called a "Natural monopoly" due to the fact that the cost-technology of the industry is markedly high, suggesting that it is more effective for only one or a few firms to dominate production.In a monopolistic market, one or several firms can make the large investment necessary, and in turn provide a large enough percentage of the output to cover the costs of their large initial investment.