In order for a natural monopoly to develop, it
a. is important that the firm be very large.
b. is important that the firm prices its product below cost.
c. is not the absolute size of the firm but its size relative to the total market demand that is important.
d. must be in the presence of government intervention.
c
Economics
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During the Kennedy administration, what did economist Walter Heller propose to bring the economy back to full employment?
A) tariffs on imported goods B) a large government works program C) tax cuts D) insourcing
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A natural monopoly owes its existence to
A) control of a key input. B) persistently declining long-run average costs as scale increases. C) patents. D) increasing marginal returns and the ability to obtain quantity discounts from suppliers.
Economics