Asked by Vaishak Reddy on Jun 30, 2024
Verified
Natural monopolies occur when:
A) government antitrust laws are too weak or not enforced.
B) negative externalities are present.
C) firms collude to set prices and divide the market among themselves.
D) one firm can service the market more cheaply than two or more firms can.
E) a public good is produced by a private firm.
Natural Monopolies
A situation in which a single firm can supply a product or service to an entire market at a lower cost than could two or more firms, leading to a market structure where only one business exists.
Service The Market
involves addressing the needs and desires of a particular market segment by offering products, services, or solutions that cater specifically to that segment's demands.
Negative Externalities
Uncompensated adverse effects that an individual or firm's activity imposes on others, not accounted for in the market price.
- Ascertain and clarify the grounds for federal intervention in the economy, involving the distribution of goods for the public benefit, the application of contract law, and the enactment of laws to prevent monopolistic behaviors.
Verified Answer
Learning Objectives
- Ascertain and clarify the grounds for federal intervention in the economy, involving the distribution of goods for the public benefit, the application of contract law, and the enactment of laws to prevent monopolistic behaviors.
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