Which of the following statements are true about this natural monopoly? Check all that apply. In order for a monopoly to exist i

Question

3 years ago

15

Which of the following statements are true about this natural monopoly? Check all that apply. In order for a monopoly to exist i

n this case, the government must have intervened and created it. It is more efficient on the cost side for one producer to exist in this market rather than a large number of producers. The gas company is experiencing diseconomies of scale. The gas company must own a scarce resource.

Business

1 answer:

NNADVOKAT [17] · Answer 1 · 2021-11-27T19:33:41+03:00

Answer: The following statements are true about this natural monopoly: It is more efficient on the cost side for one producer to exist in this market rather than a large number of producers.

Natural monopoly is a form of monopoly that persists because of start-up costs of administrating a business organization in a particular industry. A organization with natural monopoly will be the only supplier of a commodity or service in an industry.