When a single firm can supply a product to an entire market at a smaller cost than could two or more firms,what is the industry called
A)a resource industry
B)an exclusive industry
C)a government monopoly
D)a 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 referred to as a natural monopoly. This type of industry occurs when a firm’s fixed costs are so high that it is not profitable for another firm to enter the market, resulting in a single dominant firm with a large market share. Government monopolies, on the other hand, are created by the government, while exclusive industries and resource industries do not necessarily have the same cost advantages as natural monopolies.

When a Single Firm Can Supply a Product to an Entire