Large minimum efficient scale of plant combined with limited market demand may lead to

A) natural monopoly.
B) patent monopoly.
C) government franchise monopoly.
D) shared monopoly.

Natural Monopoly

A market situation where a single firm can supply a good or service to an entire market at a lower cost than could multiple firms.

Minimum Efficient Scale

The smallest scale of production at which long-term average costs are minimized, reflecting the point at which economies of scale are fully exploited.