If economies of scale exist over the entire range of market output, we can describe this situation as
A) losses for all firms in that market
B) monopolistic competition
C) a natural monopoly
D) having low entry costs that induce many firms to enter

Question

Quizplus · Accepted Answer

A natural monopoly occurs when economies of scale exist over the entire range of market output, making it most efficient for a single firm to supply all of the market's demand.

If Economies of Scale Exist Over the Entire Range of Market