Question

How can economies of scale help create a monopoly?

Answer 1

Through costs reduction.

Explanation:

With economies of scale, one firm becomes able to purchase inputs at a lower average price, which will directly induce costs reduction.

The level of economies of scale might become so high that it is discouraging for small enterprises (and even medium-sized ones) to enter the market, as they'd never be able to comply with the monopolist's/oligopolists' low costs.