A market in which the entire demand for a good or service can be satisfied at the least cost by a single firm is a
A) horizontal market.
B) natural monopoly.
C) contestable market.
D) perfect market.

Question

Quizplus · Accepted Answer

A natural monopoly occurs when a single firm can produce output and supply the entire market demand at a lower cost than any potential competitor. This is often due to high fixed costs, making it difficult for new firms to enter the market without incurring significant costs themselves.

A Market in Which the Entire Demand for a Good