2548Civil EngineeringMedium
A ________ is a market situation where economies of scale are so significant that cost are only minimized when the entire output of an industry is supplied by a single producer so that the supply costs are lower under monopoly that under perfect competition?
ANatural monopoly
BPerfect monopoly
COrdinary monopoly
DBilateral monopoly
Correct answer
A. Natural monopoly
Explanation
The correct answer is Natural monopoly.