When a single firm can supply a product to an entire market at a smaller cost than could two or more firms,the industry is called a
A)resource industry.
B)exclusive industry.
C)government monopoly.
D)natural monopoly.

Question

Quizplus · Accepted Answer

When a single firm can supply a product to an entire market at a smaller cost than could two or more firms, it is considered a natural monopoly. This is because of its inherent cost advantages due to economies of scale, which make it more efficient for a single firm to produce and supply the entire market. The other options, resource industry, exclusive industry, and government monopoly, do not accurately describe this situation.

When a Single Firm Can Supply a Product to an Entire