126k views
0 votes
A natural monopoly refers to a monopoly that is defended from direct competition by.

a. economies of scale over a broad range of output
b. a government franchise
c. control over a vital input
d. a patent or copyright

User BigJoke
by
7.4k points

1 Answer

6 votes

Answer:

a. economies of scale over a broad range of output

Step-by-step explanation:

Monopoly is a market condition in which there are no competitors and a particular company produces only that type of product and services. This is common in sectors which are very expensive to handle by the government.

However natural monopoly refers to a monopoly that is defended from direct competition by economies of scale over a broad range of output. It usually has the strong backing of the government.

User Nonremovable
by
8.0k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.