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Natural monopolies are closely associated with: a) low elasticities of demand. b) market disequilibrium. c) high-demand...

Natural monopolies are closely associated with:

a)

low elasticities of demand.

b)

market disequilibrium.

c)

high-demand products.

d)

economies of scale.

In a contestable market, monopolists do not act like typical monopolists.

a)

False

b)

True
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Answer #1

1) Natural monopolies experience decreasing average cost when they increase output so they have economies of scale

option(D)

2) Monopolists do not act like a monopolist in a contestable market

-True

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