2) Monopolies usually form because of government failure, not because of free markets. What you state is true, but its only true because because its a means to an end: It is substantially easier to manipulate government into currying you favor, than it is to build innovation that sticks. The former is just dollars. The latter is dollars + sweat + luck.

1) OK. I challenge you to find a free market that has produced a monopoly company without some kind of govt helping hand. Examples of helping hands: artificially low interest rates (derisking M&A), regulatory capture, or failure to enforce laws (antidumping, antitrust).

3) That's true. And who's fault is that not all true (cheaper) choices are offered to the market ?

Hint: Why so few $1000 new cars, or $200 surgeries? Its not the market that is not willing to make them, rest assured. Its that a certain large body is not allowing others to make their risk:reward choices.