what do natural monopolies result from
Natural monopolies result from the correct answer is:. d. extensive economies of scale in production [ see notes below for the reasons] Note:In economics, the term monopoly is used to refer to two different things. This has been a source of some ambiguity in discussions of natural monopoly The two definitions follow: A.
A natural monopoly is a monopoly that can arise when there are very high fixed costs or barriers to entry in getting started in an industry or delivering a product or service. Although the courts and government usually discourage monopolies, there are instances when society and consumers are better off with only one company.