ECONOMICS
COMPETITION AND MARKET STRUCTURES
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Natural Monopoly
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Perfect Competititon
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Monopolistic Competititon
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Imperfect Competititon
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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: -Answer and Explanation: A monopoly is any market controlled by a single seller. A natural monopoly is a specific type of monopoly. A natural monopoly is a monopoly that was created because of high start-up costs, an economy of scale, or other naturally occurring barriers to entry.
Detailed explanation-3: -A natural monopoly is a market where a single seller can provide the output because of its size. A natural monopolist can produce the entire output for the market at a cost lower than what it would be if there were multiple firms operating in the market.
Detailed explanation-4: -According to general equilibrium economics, a free market is an efficient way to distribute goods and services, while a monopoly is inefficient. The inefficient distribution of goods and services is, by definition, a market failure.