ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a market that runs most efficiently when one large firm provides all of the output.
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a monopoly created by the government.
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factors that cause a producer’s average cost per unit to fall as output rises.
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None of the Above
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Detailed explanation-1: -A natural monopoly is a market that runs most efficiently when one large firm provides all of the output. Sometimes the development of a new technology can destroy a natural monopoly. A government monopoly is a monopoly created by the government.
Detailed explanation-2: -A natural monopoly is a type of monopoly that arises due to unique circumstances where high start-up costs and significant economies of scale lead to only one firm being able to efficiently provide the service in a certain territory.
Detailed explanation-3: -Market that runs most efficiently when one large firm supplies all of the output (NIPSCO for example.) Natural monopoly.
Detailed explanation-4: -Meaning of government monopoly in English. a situation in which the government owns and controls a particular industry and there is no competition: Government monopoly of communications is incompatible with e-commerce.