Natural monopoly? Economics?

Question

A natural monopoly is a monopoly that arises because _____________.

there is a downward-sloping demand curve

one firm can meet the entire market demand at a lower price than two or more firms could

a good has no substitutes

of technological advances

Answer 1

The answer is B) because one firm can meet the entire market demand at a lower price than two or more firms could.  Don't listen to the other people trying to give you the wrong answer!!

Think of it like the water company.  It wouldn't make sense for another water company to come and lay a second set of pipes in the ground just so you could have a choice on which set you would want to use.  Then the cost of the unused pipes would go to the customers of both companies!

Answer 2

one firm can meet the entire market demand at a lower price than two or more firms could.

Answer 3

are we doing your hw or helping you take a test on-line? go w/ tech advances

Answer 4

Read the book. This question isn't that hard.

I would help but honestly I forgot. I took that class 2 semesters ago. Passed with 100% too.

"one firm can meet the entire market demand at a lower price than two or more firms could" seems like the right answer but im in no way sure.