A natural monopoly is characterized by

A) collusion with other competitors to divide up the market.
B) a decreasing average-cost curve extending beyond the market's size.
C) a firm protected from competition by a government regulation.
D) a firm having control over the entire supply of a basic input in the production process.

Natural Monopoly

A market structure where a single provider is more efficient in supplying the entire market with a product or service, due to high fixed or startup costs.

Average-Cost Curve

The average-cost curve represents the total cost of production divided by the quantity of output produced, showing how the average cost per unit of product changes with changes in output level.

Government Regulation

Rules or laws established by governments to control or manage specific activities, businesses, or industries.