A natural monopoly
A) is not protected by any barrier to entry.
B) exists because of legal barriers to entry.
C) is an industry in which economies of scale exist so that one firm can supply the market at the lowest possible cost.
D) is an industry where two or more smaller firms can supply the market at a lower cost than one big firm could.

Question

Quizplus · Accepted Answer

A natural monopoly occurs when a single firm can supply the entire market at a lower cost than any combination of two or more firms, due to economies of scale.

A Natural Monopoly