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In: Economics

Excluding the case when the government decides to create a legally-enforced monopoly, which answer below describes...

Excluding the case when the government decides to create a legally-enforced monopoly, which answer below describes the condition under which a monopoly is likely to emerge through the growth of a single firm outcompeting its smaller rivals? a. When the market demand curve intersects with a downward sloping region of a single firm’s average total cost curve. b. When the market demand curve intersects with an upward sloping region of a single firm’s average total cost curve. c. When a single firm’s marginal revenue curve intersects with that firm’s marginal cost curve. d. When a single firm’s marginal revenue curve intersects with that firm’s average cost curve.

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Expert Solution

Option A. When the market demand curve intersects with a downward sloping region of a single firm’s average total cost curve.

Explanation: This means the firm with the economy of scale can eventually sustain in the market.

Rahul Sunny answered 2 years ago
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