In Which of the Following Situations Would a Natural Monopoly

question 19

Multiple Choice

In which of the following situations would a natural monopoly exist?

• A)a firm has a government charter to be the sole producer of some good
• B)a firm is able to operate at the minimum point of its long-run average total cost curve
• C)a firm produces a product essential to national security
• D)only one firm is supplying a natural resource
• E)one firm can most efficiently supply the entire market demand

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