A market in which a single firm can produce,at a lower cost than multiple firms,the entire quantity of output demanded is called:
A) diseconomies of scale.
B) government intervention.
C) a natural monopoly.
D) price gouging.

Question

Quizplus · Accepted Answer

A natural monopoly occurs when a single firm has the ability to produce the entire quantity of output demanded in a market at a lower cost than multiple firms. This is typically due to economies of scale, where larger levels of production allow for lower average costs. Due to these lower costs, the single firm is able to operate more efficiently and potentially offer lower prices to consumers, making it difficult for other firms to enter and compete in the market.

A Market in Which a Single Firm Can Produce,at a Lower