An industry that realizes such large economies of scale in producing its product that single-firm production of that good or service is most efficient is called a(n)
A)fixed cost monopoly.
B)patent monopoly.
C)economies of scale monopoly.
D)natural monopoly.

Question

Quizplus · Accepted Answer

A natural monopoly occurs when a single firm can produce a good or service at a lower cost than any potential competitor due to significant economies of scale. This means that in the long run, it is most efficient for only one firm to produce the good or service, as any attempt by other firms to enter the market would result in higher costs and prices.

An Industry That Realizes Such Large Economies of Scale in Producing