A natural monopoly has _________, but will __________ if left unregulated.
A) exclusive access to a natural resource; price competitively
B) exclusive access to a natural resource; not maximize profit
C) low average total cost; have high marginal costs
D) low average total cost; charge a high price
E) low average total cost; undercut its competitors

Question

Quizplus · Accepted Answer

A natural monopoly typically has low average total costs due to economies of scale, and if left unregulated, it tends to charge a high price because it faces little to no competition.

A Natural Monopoly Has _________, but Will __________ If Left

A Natural Monopoly Has _, but Will __ If Left