Produces and distributes electricity has mostly fixed costs

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A firm that produces and distributes electricity has mostly fixed costs. It also tends to be the only provider of electricity in its market. This is an example of pure monopoly resulting from the firm:

having economies of scale over the entire range of the market.

owning a key resource.

having the ability to freely enter the market.

having a government-created monopoly.

Reference no: EM13834303

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