A firm is likely to be a natural monopoly
A) when the demand for its product or service is inelastic.
B) if it is producing an inferior good.
C) if economies of scale are experienced over the full range of output.
D) because government grants it an exclusive franchise.
Correct Answer:
Verified
Q109: Using antitrust law to split up an
Q110: Where there is natural monopoly, government is
Q111: The view that the antitrust laws should
Q112: The main purpose of industrial regulation is
Q113: The largest efficiency gains from deregulation have
Q115: Overall, economists believe that deregulation of industries
Q116: All of the following are regulatory commissions
Q117: The public interest theory of industrial regulation
Q118: Economists who adhere to the laissez-faire antitrust
Q119: The legal cartel theory of regulation argues
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents