Question

What is a market that runs most efficiently when one large firm supplies all of the output referred to as?

Answer 1

The answer to this question is Natural monopoly.

Answer 2

What is a market that runs most efficiently when one large firm supplies all of the output referred to as? Natural monopoly. A natural monopoly happens when there are high fixed costs or start-up costs when running a business in certain industries. A natural monopoly example are pipelines that run for water and gas. This is because they are expensive to start and run but also extremly necessary and specific to the industry.