It Is Difficult in a Natural Monopoly Market for the Firm

question 160

True/False

It is difficult in a natural monopoly market for the firm to achieve both efficiency and zero economic profit simultaneously, even with regulation.
​

---

Definitions:

Coordination Loss

The inefficiency in group performance compared to individual performance, due to the difficulty of aligning the efforts and actions of all members.

Task Taxonomy

Group tasks can be classified according to whether a division of labour is possible; whether there is a predetermined standard to be met; and how an individual’s inputs can contribute.

Divisible Task

A task that can be broken down into smaller, separate tasks to be completed by different individuals.

Co-Active Task

A task that involves mutual or joint activity, requiring participants to work together actively towards a common goal.