A ________ monopoly occurs when one large business can supply the entire market more efficiently and cheaply than several small firms due to economies of scale.
A) clear-cut
B) mitigating
C) economical
D) efficient
E) natural

Question

Quizplus · Accepted Answer

A natural monopoly occurs when one large business can supply the entire market more efficiently and cheaply than several small firms due to economies of scale, meaning that the costs of production decrease as output increases. This often happens in industries where high fixed costs are required to enter the market, such as utilities or transportation.

A ________ Monopoly Occurs When One Large Business Can Supply