If economies of scale are so pronounced in an industry that only one firm can survive in the industry, this firm is called a(n) __________ monopoly.
A)financial
B)natural
C)structured
D)independent

Question

Quizplus · Accepted Answer

A natural monopoly occurs when economies of scale are so significant that the largest firm in the industry can produce goods or services at a lower cost than its competitors, leading to a situation where only one firm can survive efficiently in the market.

If Economies of Scale Are So Pronounced in an Industry