A natural gas company has a low average total cost due to its large scale production. The initial cost of setting up the infrastructure, such as pipes and hoses, makes it risky and, most likely, unprofitable for competitors to enter the market. Which barriers to entry appropriately explains why this monopoly exists? Group of answer choices Economies of Scale Legal Monopoly Control of a Physical Resource
A natural gas company has a low average total cost due to its large scale production. The initial cost of setting up the infrastructure, such as pipes and hoses, makes it risky and, most likely, unprofitable for competitors to enter the market. Which barriers to entry appropriately explains why this monopoly exists? Group of answer choices Economies of Scale Legal Monopoly Control of a Physical Resource
Chapter14: Monopoly
Section: Chapter Questions
Problem 14.7P
Related questions
Question
A natural gas company has a low
Which barriers to entry appropriately explains why this
Group of answer choices
Economies of Scale
Legal Monopoly
Control of a Physical Resource
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