-Refer to Figure 13.1.The type of firm pictured is a
A) patent monopoly.
B) natural monopoly.
C) strategic-resource monopoly.
D) government-franchise monopoly.

Question

-Refer to Figure 13.1.The type of firm pictured is a
A) patent monopoly. 
B) natural monopoly. 
C) strategic-resource monopoly. 
D) government-franchise monopoly.

Quizplus · Accepted Answer

The firm is a natural monopoly, which typically occurs in industries where high infrastructure costs and other barriers to entry effectively prevent new competitors from entering the market, leading to a situation where a single firm can supply a product or service at a lower cost than any potential competitor.