Who is a natural monopolist?
A)A single producer in a market,usually with monopoly rights over input resources,who is able to produce at a higher cost than competing firms could.
B)A single producer in a market,usually provided with a government licence,who is able to charge a price higher than competing firms could.
C)A single producer in a market,usually benefiting from government subsidies,who is able to produce at a higher cost than competing firms could.
D)A single producer in a market,usually with large economies of scale,who is able to produce at a lower cost than competing firms could.

Question

Quizplus · Accepted Answer

A natural monopolist is a single producer in a market who is able to produce at a lower cost than competing firms due to large economies of scale. A natural monopolist may arise in industries where the fixed costs of production are high relative to the variable costs, and therefore, the average cost of production decreases as output increases.

Who Is a Natural Monopolist