When a single firm can produce output over the relevant range of demand more efficiently than two or more firms can,because of the existence of economies of scale,we have:
A) perfect competition.
B) monopolistic competition.
C) diseconomies of scale.
D) a natural monopoly.

Question

Quizplus · Accepted Answer

This situation describes a natural monopoly, where the firm with lower costs can supply the entire market at a lower price, making it impossible for smaller competitors to enter and compete.

When a Single Firm Can Produce Output Over the Relevant