Economics 9708 · AS & A Level · Monopoly

Monopoly — practice question

A business has extremely high fixed costs, yet its marginal costs of production are low. It continues to benefit from economies of scale, so the minimum efficient scale is not attained until the business is very large relative to total market demand. What type of market structure would the business operate in?

  • Amonopolistic competition
  • Bmonopsony
  • Cnatural monopoly
  • Doligopoly

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