Question

A natural monopoly is a monopoly that arises because one firm can meet the entire market demand at a lower average​ _____ cost than two or more firms could.

A legal monopoly is a market in which​ _____ by the granting of a public​ franchise, government​ license, patent, or copyright.

Firms in oligopoly are interdependent because​ _______.

A.

each​ firm's actions influence the profits of all the other firms

B.

an oligopoly market has barriers to entry

C.

each firm produces a very small percentage of the market output

D.

the average total cost curve is​ downward-sloping along the relevant range of output

Answer 1

Q1) The answer is total cost. Natural monopolies arise because of very high start up fixed costs and thus a single player can produce at a lower average total cost

Q2) A legal monopoly is a market in which​ a monopoly is established by the granting of a public​ franchise, government​ license, patent, or copyright.

Q3) The answer is (a) each​ firm's actions influence the profits of all the other firms. Thus firms can not afford to undercut each other as it will kead to a price war harming everyone.