Answers:
1) The correct answer is letter "C": It is more efficient on the cost side for one producer to exist in this market rather than a large number of producers.
2) The statement is: False.
Explanation:
1) Natural monopolies appear when only one company provides a good or service without the intention of taking over the market. Although governments allow their existence, they regulate them to protect consumers. Typically, natural monopolies are convenient because they offer their products at a lower rate than when the market is full of competitors.
2) If governments do not regulate natural monopolies they could charge for their product whatever they want. This will create uncertainty in the market because consumers whether will continue purchasing those goods or services at higher rates or look for substitutes. It is unlikely that in the short run natural monopolies' revenues would be positive under this scenario.
There are different kinds of monopoly. The answers are below;
Natural monopolies is known to often restrict output and increase prices without government regulation.
This is known as a type of monopoly where monopolist often to create barriers to entry this is because economically, it is right to have just a single producer.
learn more about monopoly from
https://brainly.com/question/13113415
