A natural monopoly exists whenO producing a large output has significantly lower marginal cost than producing a small output.the good produced by a monopoly is classified as a natural product.exploitative business tactics are used to force other companies out of the market illegally.O the monopoly-level of market power develops naturally due to the company's high product quality.

A monopoly is a sole producer of a good thus having maximum market power thus acting as a price…

natural monopoly exists when O producing a large output has significantly lower marginal cost than producing a small output. O the good produced by a monopoly is classified as a natural product. O exploitative business tactics are used to force other companies out of the market illegally. O the monopoly-level of market power develops naturally due to the company's high product quality.

natural monopoly exists when O producing a large output has significantly lower marginal cost than producing a small output. O the good produced by a monopoly is classified as a natural product. O exploitative business tactics are used to force other companies out of the market illegally. O the monopoly-level of market power develops naturally due to the company's high product quality.

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter12: Monopoly

Section: Chapter Questions

Problem 1DQ

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