A natural monopoly occurs because of
A) Legal restrictions preventing entry into the industry.
B) Low fixed costs.
C) The existence of economies of scale.
Correct Answer:
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Q1: Market failure can result from all of
Q3: An industry in which one firm can
Q4: To maximize profit,a natural monopolist produces the
Q5: The major aim of government regulation is
Q6: Economies of scale refer to the
A)Reduction in
Q7: Which of the following can the government
Q8: Which of the following is a form
Q9: Which of the following is a form
Q10: The long-run average total cost curve of
Q11: An unregulated natural monopoly can lead to
A)Higher
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