For a monopoly to be ________, the firm must realize economies of scale at a scale that is close to total demand in the market.

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 could two or more firms, primarily due to economies of scale. This typically happens when the fixed costs of providing the goods or services are high relative to variable costs, making it inefficient for multiple firms to operate in the market.

For a Monopoly to Be ________, the Firm Must Realize