TABLE 10- 1 $$\begin{array} { | l | c | }
\hline \text { Price } & \begin{array} { c }
\text { Quantity } \
\text { Demanded }
\end{array} \
\hline \$ 8 & 5 \
\hline \$ 7 & 6 \
\hline \$ 6 & 7 \
\hline \$ 5 & 8 \
\hline \$ 4 & 9 \
\hline \$ 3 & 10 \
\hline \$ 2 & 11 \
\hline
\end{array}$$
-If an industry's demand conditions allow at most one firm to cover its costs while producing at its minimum efficient scale (MES),this situation is known as

Question

TABLE 10- 1 $$\begin{array} { | l | c | } 
\hline \text { Price } & \begin{array} { c } 
\text { Quantity } \
\text { Demanded }
\end{array} \
\hline \$ 8 & 5 \
\hline \$ 7 & 6 \
\hline \$ 6 & 7 \
\hline \$ 5 & 8 \
\hline \$ 4 & 9 \
\hline \$ 3 & 10 \
\hline \$ 2 & 11 \
\hline
\end{array}$$ 
-If an industry's demand conditions allow at most one firm to cover its costs while producing at its minimum efficient scale (MES),this situation is known as

Quizplus · Accepted Answer

A natural monopoly occurs when a single firm can supply the entire market demand at a lower cost than any combination of multiple firms, often due to high fixed costs and economies of scale, allowing only one firm to operate efficiently at its MES.

TABLE 10- 1 -If an Industry's Demand Conditions Allow at Most One Firm