Figure 3-3 
-Refer to Figure 3-3. The figure above shows the supply and demand curves for two markets: the market for original Picasso paintings and the market for designer jeans. Which graph most likely represents which market?
Definitions:
Natural Monopoly
A market condition where a single supplier is most efficient in providing goods or services due to high fixed or startup costs.
Economically Efficient
A situation where resources are allocated in a way that maximizes the net benefit to society.
Barriers To Entry
Factors that make it difficult for new firms to enter an industry, such as high initial investment, legal restrictions, or strong brand loyalty among consumers.
Network Effects
The phenomenon whereby increased numbers of people or participants improve the value of a good or service.
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