When the demand for a good or service limits the quantity that can be sold to an output at which the firm experiences economies of scale,.

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02-08-2022
Business

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When the demand for a good or service limits the quantity that can be sold to an output at which the firm experiences economies of scale,.

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achulaksh achulaksh · Answer 1 · 2022-08-11T03:55:27-04:00

When the demand for a good or service limits the amount that can be sold to an output at which the firm experiences economizing of scale, the firm is a natural monopoly.

What is the distinction between genuine monopoly and monopoly?

A natural monopoly is a firm with such extreme economies of scale that once it starts creating a certain level of output, it can produce more at a far lower cost than any smaller competitor. Natural monopolies exist far more continually than pure monopolies, mainly because the conditions are not as stringent.

Which statement is the best description of a natural monopoly?

A natural monopoly is a monopoly that occurs because a single firm can supply a good or assistance to an entire market at a smaller cost than could two or more companies.

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What is the distinction between genuine monopoly and monopoly?

Which statement is the best description of a natural monopoly?

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