Which situation would be labeled a “natural monopoly”?Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.aA firm owns exclusive rights to a natural resource.bA firm applies for a patent to exclude others from entering.cA firm has large economies of scale, and is thus able to sell the good for a lower price than would if there were many firms.

Which situation would be labelled a “natural monopoly”?Group of answer choicesA firm has large economies of scale, and is thus able to sell the good for a lower price than would if there were many firms.A firm applies for a patent to exclude others from entering.A firm owns exclusive rights to a natural resource.

A natural monopoly occurs whenGroup of answer choicesthe product is sold in its natural state, such as water or diamonds.there are economies of scale over the relevant range of output.the firm is characterized by a rising marginal cost curve.production requires the use of free natural resources, such as water or air.

​A natural monopoly exists when one large firm can produce a product at a lower per unit cost than can smaller firms.Group of answer choicesTrueFalse

Fill in the Blank QuestionFill in the blank question.A natural monopoly may occur when only a single firm can achieve the of scale necessary to compete in an industry.

___________ would create a natural monopoly.a.requirement of a government license before the firm can sell the good or serviceb.technology enabling a single firm to produce at a lower average cost than two or more firmsc.an exclusive right granted to supply a good or serviced.ownership of all the available units of a necessary input