What is the best definition of a natural monopoly? a. Natural monopoly refers to any monopoly that is sanctioned by the government. b. Natural monopoly refers to a cost structure that has large fixed costs and a small constant marginal cost of production. C. Natural monopoly refers to any monopoly that can sustain its market power.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter13: Monopoly And Antitrust
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What is the best definition of a natural monopoly?
a. Natural monopoly refers to any monopoly that is sanctioned by the
government.
b. Natural monopoly refers to a cost structure that has large fixed costs
and a small constant marginal cost of production.
C. Natural monopoly refers to any monopoly that can sustain its market
power.
d. Natural monopoly refers to a monopoly that drove all of its competitors
out of business.
e. Natural monopoly refers to any monopoly that likely can't sustain its
market power for very long because the source of its power is
susceptible to erosion (e.g., an expiring patent).
Transcribed Image Text:What is the best definition of a natural monopoly? a. Natural monopoly refers to any monopoly that is sanctioned by the government. b. Natural monopoly refers to a cost structure that has large fixed costs and a small constant marginal cost of production. C. Natural monopoly refers to any monopoly that can sustain its market power. d. Natural monopoly refers to a monopoly that drove all of its competitors out of business. e. Natural monopoly refers to any monopoly that likely can't sustain its market power for very long because the source of its power is susceptible to erosion (e.g., an expiring patent).
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