BUS202 ch11 v214Regulation of a Natural Monopoly.46. Natural monppolies occur as the result the type of good they produce.Natural monopolies tend to produce goods that are highly capitalintensive, have very high fixed cost.47. Other factors leading toa natural monopoly include a scarce resourcecontrolled solely by the firm, or the firm serves a market that is limited tospecific geographical area.48. Thus, industries that tend toward a natural monopoly market structurerequires firms to engage in large scale production to reach minimumLong-Run average total cost,19. Typically, the level of output produced by the firm to reach minimumLRATC Is beyond the demand for the product in the market the firmserves.1:23 / 1:49You'TubeE3LJ91. What economic condition would suggest that a natural monopoly would be the correct market structure to allow by government regulators.Select one:Oa. MR = MCO b. MC >ATCO c. P = MCO d. LRATC > MCCheckNext page

Natural monopoly occurs in the goods which involves a huge cost of producing which simply imply that…

91. What economic condition would suggest that a natural monopoly would be the correct market structure to allow by government regulators. Select one: O a. MR = MC O b. MC >ATC O c. P = MC O d. LRATC > MC

91. What economic condition would suggest that a natural monopoly would be the correct market structure to allow by government regulators. Select one: O a. MR = MC O b. MC >ATC O c. P = MC O d. LRATC > MC

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter9: Monopoly

Section: Chapter Questions

Problem 16PAE

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Concept explainers

Monopoly Market

When a company and its products dominate a sector or an industry, it is termed a monopoly. When a firm and its products control a market, then it is called a monopoly.

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BUS202 ch11 v214
Regulation of a Natural Monopoly.
46. Natural monppolies occur as the result the type of good they produce.
Natural monopolies tend to produce goods that are highly capital
intensive, have very high fixed cost.
47. Other factors leading toa natural monopoly include a scarce resource
controlled solely by the firm, or the firm serves a market that is limited to
specific geographical area.
48. Thus, industries that tend toward a natural monopoly market structure
requires firms to engage in large scale production to reach minimum
Long-Run average total cost,
19. Typically, the level of output produced by the firm to reach minimum
LRATC Is beyond the demand for the product in the market the firm
serves.
1:23 / 1:49
You'Tube
E3
LJ
91. What economic condition would suggest that a natural monopoly would be the correct market structure to allow by government regulators.
Select one:
Oa. MR = MC
O b. MC >ATC
O c. P = MC
O d. LRATC > MC
Check
Next page

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