An industry in which economies of scale allow one firm to supply the entire market at the lowest possible cost is called a
A) single- price monopoly.
B) natural monopoly.
C) one- firm monopoly.
D) legal monopoly.

Question

Quizplus · Accepted Answer

A natural monopoly occurs when a single firm can supply the entire market more efficiently than multiple firms, leading to economies of scale. This is because the cost of production decreases as the volume of its production increases, making it impractical for new entrants to compete.

An Industry in Which Economies of Scale Allow One Firm