An industry that realizes such large economies of scale in producing its product that single-firm production of that good or service is most efficient is called a(n) ________ monopoly.
A) fixed cost
B) economies of scale
C) patent
D) natural

Question

Quizplus · Accepted Answer

A natural monopoly occurs when a single firm can supply a good or service to an entire market at a lower cost than what it would be if there were multiple firms operating in the market. This is often due to the industry having high fixed costs and significant economies of scale.

An Industry That Realizes Such Large Economies of Scale in Producing