A natural monopoly that can erect barriers that keep others out of its market is called a(n)

Question

Quizplus · Accepted Answer

A natural monopoly occurs when the market can only support one firm due to high fixed costs and economies of scale. A sustainable monopoly is a type of natural monopoly that can maintain its dominance in the market over the long term. This is because it has the ability to erect barriers to entry that limit the competition's ability to enter the market and compete effectively. Such barriers may include patents, exclusive access to a key input or distribution channel, or high start-up costs that make it difficult for new entrants to compete. Therefore, option A, a sustainable monopoly, best describes a natural monopoly that can erect barriers to entry and prevent others from entering its market.

A Natural Monopoly That Can Erect Barriers That Keep Others