Which of the following is not a possible source of natural monopoly?
A) large-scale network effects
B) simultaneous consumption
C) greater use of specialized inputs
D) rent-seeking behavior

Question

Quizplus · Accepted Answer

Rent-seeking behavior refers to the use of resources to secure and maintain economic gain from government policies or regulations, rather than by creating value through efficient production. It is not a source of natural monopoly. A natural monopoly is a market situation where a single firm can supply the entire market demand at a lower cost than any combination of two or more smaller firms. Large-scale network effects, simultaneous consumption, and greater use of specialized inputs can all contribute to creating a natural monopoly.

Which of the Following Is Not a Possible Source of Natural