When the demand for a good or service limits the quantity that can be sold to an output at which the firm experiences economies of scale,
A. the firm is a natural monopoly.
B. there are close substitutes for the good the firm produces.
C. firm is a single-price monopoly.
D. firm is well protected from competition by a legal barrier.
Answer:A
When the demand for a good or service limits the quantity that can be sold to an output at which the firm experiences economies of scale,
A. the firm is a natural monopoly. B. there are close substitutes for the good the firm produces. C. firm is a single-price monopoly. D. firm is well protected from competition by a legal barrier.
Explanation: 38. When a firm pursues a predatory pricing strategy, it does so