If there are economies of scale throughout the relevant output range of production,which is false?
A) It is a natural monopoly.
B) It is more efficient to have a single firm produce the good.
C) It would typically result from a firm's possession of an exclusive patent.
D) One large firm can produce at lower cost than two or more smaller firms.

Question

Quizplus · Accepted Answer

Possessing an exclusive patent does not necessarily lead to economies of scale. While a patent may result in a monopolistic market structure, it does not guarantee that production will be more efficient with one firm.

If There Are Economies of Scale Throughout the Relevant Output