Question

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. A single firm supplies all the output.

D. The government supplies all buyers with the product.

Answer 1

A single firm supplies all the output.

Step-by-step explanation:

A natural monopoly is a market that runs most efficiently when one large firm provides all the output, such as a community’s water supply.

Answer 2

c

Step-by-step explanation: