There are only two justifications for monopoly: ______________ and _____________.

Question

Quizplus · Accepted Answer

Economies of scale and natural monopolies are recognized justifications for monopoly because they can lead to lower costs and prices for consumers. Economies of scale occur when increased production leads to lower costs per unit, which can justify a single producer. Natural monopolies occur in industries where high infrastructure costs make multiple competitors inefficient, such as utilities.

There Are Only Two Justifications for Monopoly: ______________ and _____________

There Are Only Two Justifications for Monopoly: __ and _