In an industry characterized by a natural monopoly, which of the following characteristics will be observed?
A)The long-run average cost curve will be upward sloping.
B)The market price of the product will be very low.
C)Competition is both impossible and inefficient.
D)Number of producers operating in this market will be low.

Question

Quizplus · Accepted Answer

In a natural monopoly, a single firm can supply the entire market at a lower cost than multiple firms, making competition inefficient and often impossible.

In an Industry Characterized by a Natural Monopoly, Which of the Following