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nekit
1 month ago
5

Which of the following statements are true about this natural monopoly? Check all that apply. The cable company is experiencing

economies of scale. The cable company is experiencing diseconomies of scale. It is more efficient on the cost side for one producer to exist in this market rather than a large number of producers. The cable company must own a scarce resource. True or False: Without government regulation, natural monopolies can earn positive profit in the short run. True False
Business
2 answers:
marusya05 [3.7K]1 month ago
6 0
1) The answer corresponds to option "C": It is more cost-effective for one producer to operate within this market compared to having many producers. 2) The statement is evaluated as False. Natural monopolies exist when a single company provides goods or services without the aim of monopolizing the market. Governments do permit these monopolies but also impose regulations to safeguard consumer interests. Generally, natural monopolies are beneficial as they tend to provide products at lower prices compared to a competitive market. If left unchecked, these monopolies could dictate their pricing, leading to market instability as consumers grapple with higher costs or seek alternatives. Under such conditions, it’s improbable that natural monopolies would see positive revenue in the short term.
Mariulka [3.8K]1 month ago
3 0
The responses indicate that it is more cost-efficient for a sole producer to operate in this market versus multiple producers. Additionally, it is indeed correct that natural monopolies can generate positive profits in the short term without government intervention.
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