Which of the following monopolists would likely face zero marginal cost?
A) An airline monopoly.
B) A diamond monopoly.
C) A monopolist selling spring water.
D) A monopolist selling the daily newspaper in a small town.
E) A monopolist selling a video game.

Question

Quizplus · Accepted Answer

A monopolist selling spring water would likely face zero marginal cost as the cost of producing and distributing water is relatively low, and once the infrastructure is in place, the cost of producing an additional unit is minimal. This is unlike the other options, such as the airlines and diamond monopolies, which both face significant production costs for each additional unit sold.

Which of the Following Monopolists Would Likely Face Zero Marginal