Natural monopolies result from the peculiar relationship between
A) government regulation and the ownership of scarce resources
B) threats to potential entrants and the price of the product
C) the size of market demand and the firm's cost structure
D) product differentiation and the ownership of patents
E) the firm's advertising campaigns and its labor policies

Question

Quizplus · Accepted Answer

Natural monopolies occur when a single firm can supply a product or service to an entire market at a lower cost than what it would be if there were multiple firms, due to economies of scale related to the firm's cost structure and the size of market demand.

Natural Monopolies Result from the Peculiar Relationship Between