Asked by Alexandro Enriquez on May 14, 2024
Verified
In general,economists are critical of monopoly where there is/are:
A) no natural monopoly.
B) a natural monopoly.
C) only a few firms.
D) persistent economies of scale.
Natural Monopoly
A market condition where a single firm can supply a product or service at a lower cost than two or more firms, due to economies of scale.
Economies of Scale
The cost advantages that enterprises obtain due to size, output, or scale of operation, with cost per unit of output generally decreasing with increasing scale.
Persistent
Continuously existing or enduring over a prolonged period.
- Comprehend the principle of a natural monopoly and the justification behind governmental interventions in these monopolies.
Verified Answer
Learning Objectives
- Comprehend the principle of a natural monopoly and the justification behind governmental interventions in these monopolies.
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