Which of the following situations would likely result in the formation of a natural monopoly? Question 21Select one or more: a. There is very low demand for the product, i.e., there’s a small market b. Firms have large fixed costs and a constant marginal cost of production c. Due to return to scale, one large firm can produce at a lower cost than many small firms d. The government issues liquor licenses, which are required for businesses to sell alcohol e. Doctors can only practice medicine if they are accredited by the American Medical Association f. The government issues a patent for a new invention
Which of the following situations would likely result in the formation of a natural monopoly? Question 21Select one or more: a. There is very low demand for the product, i.e., there’s a small market b. Firms have large fixed costs and a constant marginal cost of production c. Due to return to scale, one large firm can produce at a lower cost than many small firms d. The government issues liquor licenses, which are required for businesses to sell alcohol e. Doctors can only practice medicine if they are accredited by the American Medical Association f. The government issues a patent for a new invention
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter23: Monopoly
Section: Chapter Questions
Problem 2WNG
Related questions
Question
Which of the following situations would likely result in the formation of a natural
Question 21Select one or more:
a.
There is very low demand for the product, i.e., there’s a small market
b.
Firms have large fixed costs and a constant marginal cost of production
c.
Due to return to scale, one large firm can produce at a lower cost than many small firms
d.
The government issues liquor licenses, which are required for businesses to sell alcohol
e.
Doctors can only practice medicine if they are accredited by the American Medical Association
f.
The government issues a patent for a new invention
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