A natural monopoly's preemption of entry by other firms by exploiting its economies of scale is an example of

Question

Quizplus · Accepted Answer

A natural monopoly can deter entry by other firms by leveraging its economies of scale, which gives it a cost advantage over potential competitors. This is an example of a first-mover advantage, where the initial occupant of a market segment can establish a strong position that is difficult for others to challenge.

A Natural Monopoly's Preemption of Entry by Other Firms by Exploiting