Which barrier to entry results in the creation of a natural monopoly?
A) legal barriers like government franchises
B) economies of scale
C) ownership of a vital resource
D) patents and copyrights

Question

Quizplus · Accepted Answer

Economies of scale can result in a natural monopoly, as the cost per unit of production decreases as the quantity produced increases, making it difficult for smaller firms to compete.

Which Barrier to Entry Results in the Creation of a Natural