🏷️ LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION →
Log in
Economics
12
answers
0
watching
196
views

A natural monopoly is a market where:

A) a single firm has control over a vital natural resource.

B) many smaller firms can produce the entire market output at the same per-unit cost as could one large firm.

C) a single large firm can produce the entire market output at a lower per-unit cost than a group of smaller firms.

D) many smaller firms can produce the entire market output at a lower per-unit cost than could one large firm.

Watch
12
answers
0
watching
196
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share
Already have an account? Log in
Share
Already have an account? Log in
Share
Already have an account? Log in
Share
Already have an account? Log in
Share
Already have an account? Log in
Share
Already have an account? Log in
Share
Already have an account? Log in
Share
Already have an account? Log in
Share
Already have an account? Log in
Share
Already have an account? Log in
Share
Avatar image
Read by 1 person
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

A natural monopoly is defined as an industry in which:

a)  one firm can produce the entire industry output at a lower average cost than a larger number of firms could.

b)  a single firm controls crucial inputs to the production process.

c)  a single seller exists as a result of patent protection.

d)  a single firm exists because the government owns and operates the monopoly.

True/False

Indicate whether the sentence or statement is true or false.

____ 1. The average fixed cost curve increases as output increases over a relevant range of production.

____ 2. Average revenue is slightly higher than price.

____ 3. Marginal cost curves and average cost curves are both purely upward sloping.

____ 4. A firm that sells at a price below average cost is not making a normal profit.

____ 5. In the short run, it is possible for a perfectly competitive firm to make economic profits or economic losses.

____ 6. If a firm sells its output at a price greater than AC, it will earn economic profit.

____ 7. Zero profit in the economic sense means that firms are earning a normal rate of return.

____ 8. In a free market (laissez-faire) system, the price mechanism dictates the production planning (how to produce) decisions.

____ 9. Free markets produce relatively high levels of efficiency but low rates of growth.

____ 10. A natural monopoly occurs when a single firm can produce the entire output of the market at a lower average cost than could many firms.

A natural monopoly arises when

A.

two firms merge to become the only firm serving an entire market.

B.

a single firm controls all of a natural resource.

C.

a firm acquires a patent.

D.

economies of scale are so great that only one firm can exist in a market.

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in