Is monopoly ever justified? Why or why not?

Usually, monopolies are associated with various drawbacks, including low output and exorbitant prices. On the same note, other schools of thought perceive monopolies as the deterrents of social democracy and free market libertarianism. A society devoid of any structure or governing rules shifts to a monopolistic formation, where all the powers are transferred to one or a few nobles.
Looking at the issue from a different viewpoint, however, the benefits of monopolies may significantly outweigh their demerits. Some of the notable justifications of monopolies include the fact that they are in a better position to sponsor development and research and also reap the benefits of lower average costs. To explain the aforementioned arguments further, the supernormal or excessive profits generated by the monopolies can be used to fund projects that require enormous investments. Moreover, increased output, which is one of the key features of monopolies, will translate to reduced production costs. Essentially, this means that customers can enjoy services and goods from monopolies at a relatively reduced cost.
Monopolies serve as the best choice in industries such as electricity distribution (it would be pointless to have multiple electric cables traversing the same neighborhood), bus services (to simplify timetabling), and in the pharmaceutical industry (the issuance of patents facilitates new research, and ultimately new drugs are created).
https://courses.lumenlearning.com/boundless-economics/chapter/barriers-to-entry-reasons-for-monopolies-to-exist/


A monopoly is the state of a marketplace where one producer has a stranglehold on all, or substantially all demand. In economic models such as the ones that exist in the United States and Europe, monopolies are typically extremely disfavored because they do not allow a freedom of choice in the market. Without freedom of market choice, competition does not drive prices down and the end result is typically a decrease in the quality of the good or service that reaches the consumer. However, when multiple companies compete in a free market, they are incentivized to create a better quality product at a lower price, in order to be victorious against one another to be the supplier for existing demand.
There are some permissible monopolies, but those are typically state monopolies, where the government prohibits any other entity from offering the service for a valid public policy rationale. A generally agreed state monopoly would be in military and weaponry, where the state will not allow any other entity to compete with it and offer to provide the protection for common citizens. Courts tend to have monopolies on the service of deciding disputes.
See futher:
"Industrial Organization: A Strategic Approach" by Church, Jeffrey and Ware, Roger. University of Calgary Press. 2000.


In an ideal world, consumers are generally better served when there is competition between various industries. Competition tends to help keep prices in check and often prevents companies from charging whatever they want because there is no competition. However, there are some instances where it is justified to have the existence of monopolies.
Some industries have incredible setup costs. In these industries, it is justified to have a monopoly. Examples can be found in the electrical, natural gas, and water industries. Because the setup costs are so high for an electric company, a natural gas company, and a water utility, it would not be feasible for multiple companies to provide these services to a city or a region. In these cases, it is acceptable to have one water utility, one natural gas company, and one electric company serving a city or a region. The companies are regulated by a government agency. This prevents them from raising rates without getting permission from the government. These companies provide a very valuable service and are regulated by the government. Government regulation helps to protect the consumer from unreasonable rate increases.
https://www.thebalance.com/monopoly-4-reasons-it-s-bad-and-its-history-3305945

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