Suppose that a market that is a natural monopoly has three producers providing the good to this market. This situation will a. result in a more efficient outcome than the market with fewer producers. b. result in higher average costs for each producer than if there were only a single producer. c. result in all firms taking full advantage of economies of scale in the production of the good. d. result in lower prices for consumers under all circumstances.

Question

Liberty Newman

Advanced Placement (AP)

22 August, 09:40

Suppose that a market that is a natural monopoly has three producers providing the good to this market. This situation will a. result in a more efficient outcome than the market with fewer producers. b. result in higher average costs for each producer than if there were only a single producer. c. result in all firms taking full advantage of economies of scale in the production of the good. d. result in lower prices for consumers under all circumstances.

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Answers (1)

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Jayda Randall · Answer 1

a would be the best choice

Explanation:

because markets with more producers have more variety of goods to sell than markets with less producers therefore making them more efficient.

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