How could a monopoly offer a lower price than a scenario of intense competition?
A) only if the monopoly was natural
B) only if the monopoly had a hard to duplicate input
C) only if the monopoly had a patent
D) only if the monopoly was backed by government protection

Question

Quizplus · Accepted Answer

A natural monopoly can offer lower prices due to economies of scale, where the cost per unit decreases as production increases, allowing them to spread costs over a larger output.

How Could a Monopoly Offer a Lower Price Than a Scenario