The basic idea of a natural monopoly is that there is one producer, and new sellers...

 

 

 

 

Transcribed Image Text:

The basic idea of a natural monopoly is that there is one producer, and new sellers are discouraged from entering the market because they would have significantly higher marginal costs than the existing seller in the market. there would be legal barriers against entering the market. the current producer has a patent on its product. the current producer is facing a rise in costs due to natural increases in the prices of inputs. Market power results in companies that and that have compared to perfect competition. produce less; higher price have higher costs; lower revenue have more elastic demand curves; less variation in costs have lower revenue; more elastic demand curves Walmart has a large aisle that displays many different types of shampoos. This observation indicates that the shampoo market is a perfectly competitive market. a monopoly. an oligopoly. a monopolistically competitive market. Patents have a positive impact of and the negative impact of reducing price; increasing costs creating more competition; reducing demand encouraging research; creating a monopoly reducing costs; reducing competition The basic idea of a natural monopoly is that there is one producer, and new sellers are discouraged from entering the market because they would have significantly higher marginal costs than the existing seller in the market. there would be legal barriers against entering the market. the current producer has a patent on its product. the current producer is facing a rise in costs due to natural increases in the prices of inputs. Market power results in companies that and that have compared to perfect competition. produce less; higher price have higher costs; lower revenue have more elastic demand curves; less variation in costs have lower revenue; more elastic demand curves Walmart has a large aisle that displays many different types of shampoos. This observation indicates that the shampoo market is a perfectly competitive market. a monopoly. an oligopoly. a monopolistically competitive market. Patents have a positive impact of and the negative impact of reducing price; increasing costs creating more competition; reducing demand encouraging research; creating a monopoly reducing costs; reducing competition

Answer rating: 100% (QA)

Answer is A Natural monopoly occurs when only one producer could produce at lower cost and if other ... View the full answer