Which of the following is not a condition that tends to facilitate natural monopolies? a. Economies...

Which of the following is not a condition that tends to facilitate natural monopolies?

a. Economies of scale.

b. High start-up costs.

c. Antitrust laws.

d. All of the above

Solutions

Expert Solution

The answer is (c) antitrust laws

Natural monopolies are craeted when the starting costs are high and it is better if one firm enjoys the economies of scale. Antitrust laws are laws against monopoly practices and they do not facilitate, but rather hinder the formation of natural monopoly and is thus the right option.

Rahul Sunny answered 2 years ago

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