What is created when one company is able to supply all the goods or services needed by the marketplace?
A) Communism
B) Natural monopolies
C) Marketplace shifts
D) Monopolistic competition
E) Oligopolies

Question

Quizplus · Accepted Answer

When one company is able to supply all the goods or services needed by the marketplace, it creates a natural monopoly. This occurs when the economies of scale are so efficient that it is not feasible for other companies to compete. The single supplier has the power to set prices and control the market.

What Is Created When One Company Is Able to Supply