Homework Answers
Ans.1- (B)
A monopoly is the sole supplier of a good in the market. Since there is no competitor of the firm so there is no close substitute for the product.
Ans.2- (D)
A natural monopoly incurs a huge fixed cost. Therefore its average cost continues to fall with an increase in output and therefore it experiences economies of scale.
Ans.3- (A)
Since there is a single firm in a market so its demand curve is the same as the demand curve for the industry.
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A monopoly is the single supplier of a product with no a. barriers to entry b....
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