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Carson Hatch
on Dec 12, 2024

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A natural monopoly is a market where

A) a single firm has control over a vital natural resource.
B) many smaller firms can produce the entire market output at the same per-unit cost as could one large firm.
C) a single large firm can produce the entire market output at a lower per-unit cost than a group of smaller firms.
D) many smaller firms can produce the entire market output at a lower per-unit cost than could one large firm.

Natural Monopoly

A market situation where a single supplier is most efficient in providing goods or services due to the high fixed or startup costs relative to the size of the market.

Per-unit Cost

The cost associated with producing a single unit of a product, including all variable and fixed costs divided by the total output.

Market Output

The total quantity of goods or services produced and offered for sale by firms in a particular market.

  • Attain an understanding of the distinctive qualities of a natural monopoly.
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uzair iftikharDec 17, 2024
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