An Industry That Realizes Such Large Economies of Scale in Producing

question 219

Multiple Choice

An industry that realizes such large economies of scale in producing its product that ________ production of that good or service is most efficient is called a natural monopoly.

• A) government
• B) multi-firm
• C) no
• D) single-firm

---

Definitions:

Surplus

The amount by which the supply of a product exceeds its demand, often leading to lower prices.

Market For Butter

The economic platform where buyers and sellers engage in the exchange of butter, determining its price and quantity available.

Price Floor

A government or group-imposed price control that sets the minimum allowed price above the equilibrium price, potentially leading to surpluses.

Inefficiency

A situation where resources are not used in the most effective way, leading to waste or a loss of potential utility.