What is a major characteristic of a natural monopoly?

A) The firm is a single seller of a resource.
B) It sets price equal to marginal revenue.
C) There is extensive product advertising.
D) There is a large range for economies of scale.

Natural Monopoly

A market situation where a single supplier is most efficient in producing or supplying goods or services due to high fixed or startup costs.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, characterized by a reduction in the per-unit cost as production increases.