In what way and by which of the following factors is a natural monopolist's ability to price its product affected
A)It is constrained by the market demand curve.
B)It is constrained by market supply.
C)It is restricted by potential entrants.
D)It is enhanced by regulatory control of the government.

Question

Quizplus · Accepted Answer

A natural monopolist's ability to price its product is primarily constrained by the market demand curve, as it determines the maximum price consumers are willing to pay for different quantities of the product.

In What Way and by Which of the Following Factors