Economists refer to a monopoly that results from very high fixed costs as a
A)unnatural monopoly.
B)a necessary monopoly.
C)a natural monopoly.
D)a simple monopoly.

Question

Quizplus · Accepted Answer

A natural monopoly occurs when a single firm can supply the entire market at a lower cost than any potential competitor due to very high fixed costs. This results in little or no competition and the firm becomes a monopoly.

Economists Refer to a Monopoly That Results from Very High