ZuoTi.Pro
Question

A natural monopoly is most likely to result if a single firm: Group of answer choices...

A natural monopoly is most likely to result if a single firm:

Group of answer choices

is the only seller in a community.

is investor-owned, but is granted the exclusive right by the government to operate in a market.

experiences economies of scale over a wide range of output.

has gained control over a strategic input of an important production process.

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Answer is option C)

experiences economies of scale over a wide range of output.

if a single firm experience strong economies of scale , so that AC curve falls continuously & MC lies below AC , then the firm is said to be a natural Monopoly firm

So, a single firm is the most efficient to serve the industry , thus this firm can produce enough to satisfy entire market demand before reaching to it's MES( minimum efficient scale) .

0 0
Add a comment
Know the answer?
Add Answer to:
A natural monopoly is most likely to result if a single firm: Group of answer choices...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • A sunk-cost monopoly is most likely to result if a single firm: A) is the only seller in a small town or community. B) i...

    A sunk-cost monopoly is most likely to result if a single firm: A) is the only seller in a small town or community. B) is investor owned, but granted the exclusive right by the government to operate in a market. C) experiences long-run increasing economies of scale over a wide range of output. D) has made extensive investments in advertising to establish brand-name recognition among consumers.

  • 1. Marginal cost pricing means that a firm charges Group of answer choices A price that...

    1. Marginal cost pricing means that a firm charges Group of answer choices A price that is marginally lower than the average total cost of production. Any price as long as average total cost is greater than marginal cost. A price that is marginally higher than the average total cost of production A price that is equal to the marginal cost of production. 2. If the government wants a natural monopolist to achieve allocative efficiency, the government should Group of...

  • 1)In the U.S. a drug company’s patent remains in force for: Group of answer choices a)10...

    1)In the U.S. a drug company’s patent remains in force for: Group of answer choices a)10 years. b)25 years. c)70 years. d)20 years. 2)When a natural monopoly exists in a given industry, the per-unit costs of production will be Group of answer choices a)lower for the smaller firms than for larger firms. b)lowest when there are a large number of producers in the industry. c)lowest when a single firm generates the entire output of the industry. d)minimized at the output...

  • L. Sources of monopoly power tive firm, has some market power. It can raise its price,...

    L. Sources of monopoly power tive firm, has some market power. It can raise its price, within limits, without the quantity demanded falling to zero. ket power is through barriers to entry-that is, other companies cannot enter the market to create competition in that particular industry Complote the following table by indicating which barrier to entry appropriately explains why a monopoly exists in each scenario. Barriers to Entry Exclusive Ownership of a Key Resource Government Createcd Monopolies Scenario Economies of...

  • 1.) What is the main difference between a competitive firm and a monopoly? a. A competitive...

    1.) What is the main difference between a competitive firm and a monopoly? a. A competitive firm owns a key resource, but a monopoly firm does not. b. A competitive firm is a price taker, and a monopoly is a price maker. c. A competitive firm produces output at a lower cost than a monopoly firm. d. A competitive firm is subject to government regulations, but a monopoly firm is not. 2.) What is the main social problem caused by...

  • 1. A cartel is a group of firms that attempts to a. maximize joint revenue. b....

    1. A cartel is a group of firms that attempts to a. maximize joint revenue. b. increase competition. c. behave independently. d. maximize joint profit. 2. If a firm's product loses brand loyalty, then the demand curve will: a. Become less price elastic. b. Shift to the right. c. Become more price elastic. d. Shift to the left. 3. Assume a monopoly confronts the same costs and demand as a competitive industry. In this case, the monopolist produces: a. Less...

  • 10. The Beck & Watson article is a Group of answer choices quantitative study qualitative study...

    10. The Beck & Watson article is a Group of answer choices quantitative study qualitative study 11. Beck & Watson examined participants' experiences and perceptions using what type of research design? Group of answer choices particpant obersvation phenomenology 12. Select the participants in the Beck & Watson study Group of answer choices Caucasian women with 2-4 children Caucasian pregnant women 13. In the Beck & Watson study, data was collected via a(n) Group of answer choices internet study focus group...

  • 14. Select the number of participants in the Beck & Watson study Group of answer choices...

    14. Select the number of participants in the Beck & Watson study Group of answer choices 8 13 22 35 15. Beck & Watson determined their final sample size via Group of answer choices coding saturation triangulation ethnography 16.Through their study, Beck & Watson determined Group of answer choices after a traumatic birth, subsequent births have no troubling effects after a traumatic birth, subsequent births brought fear, terror, anxiety, and dread Subsequent Childbirth After a Previous Traumatic Birth Beck, Cheryl...

  • Match the following: Adam Smith David Ricardo John Maynard Keynes Choices: (2 are not used.) a....

    Match the following: Adam Smith David Ricardo John Maynard Keynes Choices: (2 are not used.) a. founder of modern market economics comparative advantage-argument for mutual benefits of international trade comparative advantage-emphasized job displacements of international trade founder of modern macroeconomics invented capitalism duo If a firm has trouble selling its good, it can lower price. increase demand. decrease supply. both a) and b) are correct. 6. People often pay too much for goods because they are not aware of which...

  • Match the following: 2. Adam Smith 3. Karl Marx 4. John Maynard Keynes Choices: (2 are...

    Match the following: 2. Adam Smith 3. Karl Marx 4. John Maynard Keynes Choices: (2 are not used.) a. invented capitalism b. invented socialism c. founder of modern macroeconomics d. founder of modern market economics e. predicted the end of capitalism 5. If a firm has trouble selling its good, it can a. lower price. b. increase demand. c. decrease supply. d. both a) and b) are correct. 6. People often pay too much for goods because they are not...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT