Asked by
carolina ortega
on Dec 19, 2024Verified
Natural monopolies result from
A) patents and copyrights.
B) pricing strategies.
C) extensive economies of scale in production.
D) control over an essential natural resource.
Natural Monopolies
Industries where a single firm can supply a product or service to an entire market at a lower cost than any potential competitor, often due to economies of scale.
Extensive Economies of Scale
Refers to reductions in per-unit cost as the size of a firm or its level of production increases.
- Identify the circumstances that lead to the formation of natural monopolies.
Verified Answer
MN
Learning Objectives
- Identify the circumstances that lead to the formation of natural monopolies.