A natural monopoly occurs when: A. economies of scale are large enough so that one firm can supply the entire market at a lower average total cost than can two or more firms. B. diseconomies of scale are large enough so that one firm can supply the entire market at a lower average total cost than can two or more firms. C. the average variable cost curve is increasing. D. None of the above is true.

Question

22-10-2019
Business

contestada

A natural monopoly occurs when: A. economies of scale are large enough so that one firm can supply the entire market at a lower average total cost than can two or more firms. B. diseconomies of scale are large enough so that one firm can supply the entire market at a lower average total cost than can two or more firms. C. the average variable cost curve is increasing. D. None of the above is true.

Respuesta :

Otras preguntas

Alyssa's team won 5 out of every 7 games this season. If the team played 28 games this season, how many games did they win?

In what way was Louis XVI's attitude toward France's economic conditions a cause of the French Revolution?

If a business person wants to get information about a special product to a wide variety people across a large geographic range, even globally, which of the foll

Which of the following is an example of a chemical change? Breaking glass Boiling water Baking a cake Holding two magnets together

Effect of Transactions on Accounting Equation a. A vacant lot acquired for $115,000 is sold for $298,000 in cash. What is the effect of the sale on the total a

HELP ME ASAP PLEASE!

An 8-oz tub of yogurt causes two dollars and a 32 ounce tube cost is six dollars what fraction of the cost of the large tube is the small tub?

PLEASE ANYONE!!! The table below shows selected points from a function.The rate of change for the interval shown in the table isA. constantB. not constantpart b

An investigator reviewed the medical records of 200 children seen for care at Boston Medical Center in the past year who were between the ages 8 and 12 and iden

ranichoubey506 ranichoubey506 · Answer 1 · 2019-10-29T20:12:32+01:00

Correct answer is (A). Natural monopoly occurs because of economies of scale.

Explanation: In case of monopoly, the average total cost (ATC) declines and gives monopolists the advantage over its competitors in the market. It is discrete type of monopoly where fixed cost are way too high which results in low entry and exit of new entrants and hence, natural monopoly. They comes with economies of scale, which means they create large relations to the size of market.