contestada

How does a natural monopoly function?

A: imperfect competition makes it difficult for firms to do business.

B: a few firms are in perfect competition.

C: the government supplies all buyers with the product

D: a single firm supplies all the output.

Respuesta :

Answer:

D: a single firm supplies all the output.

Step-by-step explanation:

A natural monopoly runs most efficiently when one large firm supplies all of the output.

A natural monopoly occurs when the most efficient number of firms in the industry is one. As the name suggests, monopoly means single. We can also say that it is a market structure characterized by a single seller, selling a unique product in the market.