Asked by Alexandro Enriquez on May 14, 2024

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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.
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kayla baptisteMay 16, 2024
Final Answer :
A
Explanation :
Economists are critical of monopoly where there is no natural monopoly, as this suggests that the monopoly is able to engage in anti-competitive behavior to maintain its market power, rather than simply benefiting from efficiencies of scale or other natural market forces. In contrast, a natural monopoly may be more acceptable, as it may be the most efficient way to provide a good or service due to high fixed costs or other factors. Having only a few firms in a market or persistent economies of scale may also raise concerns, but these factors alone do not necessarily indicate an anti-competitive monopoly.