Natural monopolies:
A)capture lowest costs per unit possible.
B)capture profits by restricting output.
C)pose a problem for policy-makers.
D)All of these statements are true.

Question

Quizplus · Accepted Answer

Natural monopolies have a cost advantage in producing a given level of output, and capturing the lowest costs per unit possible (A). However, they can also capture profits by restricting output (B), which can create challenges for policy-makers (C). Therefore, all of these statements are true (D).

Natural Monopolies