A market structure in which only one firm has survived because of its economies of scale is called a
A)natural monopoly.
B)planned monopoly.
C)structural monopoly.
D)free monopoly.

Question

Quizplus · Accepted Answer

A natural monopoly occurs when one firm has significant economies of scale relative to the size of the market, making it less expensive to operate than any potential competitor. This allows the incumbent firm to outcompete any new entrants and effectively maintain a monopoly in the market.

A Market Structure in Which Only One Firm Has Survived