A market in which a single seller is required for technical efficiency in production is called a(n)
A) regulated industry.
B) natural monopoly.
C) oligopoly.
D) competitive market.
E) monopolistic competition.

Question

Quizplus · Accepted Answer

A natural monopoly occurs when a single firm can produce the total output demanded by the market at a lower cost than any combination of two or more smaller firms. This is often seen in industries with high fixed costs such as utilities, where it would not be efficient to have multiple firms investing in duplicative infrastructure.

A Market in Which a Single Seller Is Required for Technical