If the economies of scale are so large that only one firm can survive in the industry, then that industry is called a(n)
A) monopoly.
B) natural monopoly.
C) oligopoly

Question

Quizplus · Accepted Answer

A natural monopoly occurs when the economies of scale are so large that it is most efficient for production to be concentrated in a single firm. This typically happens in industries where the initial investment and ongoing costs of operating are so high that new entrants cannot compete effectively.

If the Economies of Scale Are So Large That Only