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Kaitlyn Paciolla
on Oct 08, 2024

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Which of the following is not a possible source of natural monopoly?

A) Large-scale network effects.
B) Simultaneous consumption.
C) Greater use of specialized inputs.
D) Rent-seeking behavior.

Natural Monopoly

A situation in the market where due to high initial costs and substantial economies of scale, a single firm can supply a product or service at a lower cost than any potential competitor, leading to a market dominated by one supplier.

Network Effects

Increases in the value of a product to each user, including existing users, as the total number of users rises.

Rent-seeking Behavior

Activities undertaken by individuals or firms to increase their own wealth without creating new wealth, often through manipulating the social or political environment in which economic activities occur.

  • Identify and understand different sources and consequences of natural monopoly.
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MJ
Mellow Jane LigadOct 13, 2024
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