A firm such as a public utility,which is the sole producer in a market in which government determines prices and standards of service,is known as a(n):
A)local monopoly.
B)natural monopoly.
C)regulated monopoly.
D)oligopoly.
E)monopolistically competitive firm.

Question

Quizplus · Accepted Answer

A regulated monopoly is a firm that operates as a monopoly in its market but is subject to government regulation, typically in terms of pricing and quality of service. Since the government determines prices and standards of service in this scenario, it falls under the category of a regulated monopoly. Local monopoly refers to a situation where a firm is the sole producer in a local market, while a natural monopoly exists when a single firm can produce output at a lower cost than any potential competitor. Oligopoly is a market structure characterized by a small number of large firms, and monopolistic competition exists when there are many firms selling differentiated products in a market.

A Firm Such as a Public Utility,which Is the Sole