Large minimum efficient scale of plant combined with limited market demand may lead to
A)natural monopoly.
B)patent monopoly.
C)government franchise monopoly.
D)shared monopoly.

Question

Quizplus · Accepted Answer

A natural monopoly occurs when high infrastructure costs and other barriers to entry relative to the size of the market make it most efficient for a single firm to supply all of the market's demand.

Large Minimum Efficient Scale of Plant Combined with Limited Market