A market in which a single seller is required for efficient production is called a
A)pure monopoly.
B)regulated industry.
C)natural monopoly.
D)competitive market.
E)contestable market.

Question

Quizplus · Accepted Answer

A natural monopoly is a market in which a single firm can produce goods or services at a lower cost than any potential competitor. This usually occurs in industries where the fixed costs of production are very high, such as utilities or transportation. In such cases, having multiple firms competing would result in duplication of infrastructure, higher costs, and inefficient production. Therefore, a single seller is required for efficient production, making it a natural monopoly.

A Market in Which a Single Seller Is Required for Efficient