An industry in which one firm can supply the entire market at a lower price than two or more firms can is called a A

Marketing Dec 28, 2020

An industry in which one firm can supply the entire market at a lower price than two or more firms can is called a

A. legal monopoly.

B. single-price monopoly.

C. natural monopoly.

D. price-discriminating monopoly.

Expert Solution

The correct option is C. Natural Monopoly.

Usually, a natural monopoly operates in the market either due to a high setup cost or due to powerful economies of scale. Thus, an industry where one firm can supply the entire market than two or more operating firms supply is known as the natural monopoly.

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote