5 marksMarket Structure
CAPE Economics Unit 1 · 2008 · Paper 2 · Question 4(b)(i)
Explain what is meant by a 'natural monopoly'.
The mark scheme is shown once you've answered.
Practise this questionOther parts of this question
- 4(a)(i)Public good[12 marks]
- 4(a)(ii)Externalities[12 marks]
- 4(a)(iii)Asymmetric information (moral hazard and adverse selection)[15 marks]
- 4(b)(ii)State why a natural monopoly uses resources inefficiently if unregulated.[3 marks]
- 4(c)Identify ONE pricing rule that a regulator may apply, and state how it may be used to achieve efficiency.[3 marks]
More practice: the rest of this paper · more Market Structure questions · all CAPE Economics Unit 1 past papers