Question

When does a natural monopoly arise?

Answer 1

Monopolies arise where the main supplier in an industry, frequently the first supplier in a market, has an vast cost advantage in excess of other actual or possible competitors; this inclines to be the case in businesses where fixed costs prevail, making economies of scale that are large in relative to the scope of the market, as is the circumstance in water and electricity facilities. So the answer is C.

Answer 2

Answer: its c

Explanation:

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