An industry that realizes such large economies of scale in producing its product that ________ production of that good or service is most efficient is called a natural monopoly.
A) government
B) multi-firm
C) no
D) single-firm

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 two or more firms, making single-firm production most efficient.

An Industry That Realizes Such Large Economies of Scale in Producing