The cable company must own a scarce resource. The cable company is experiencing diseconomies of scale. In order for a monopoly to exist in this case, the government must have intervened and created it. The cable company is experiencing economies of scale.

Which of the following statements are true about the natural monopoly?

The cable company is experiencing economies of scale.

Explanation:

Natural monopolies form when a company experiences economies of scale, and the cost for providing additional units of goods or services is really low compared to the investment required to start operating in the industry. If other firms try to enter the market, their costs will be extremely high and will start to lower only after serving a large share of the market. That is the reason why competition is discouraged.

This applies to many utilities companies, e.g. it is extremely expensive to lay out a water distribution system, but once it is operational, the costs of providing the service is extremely low.

Renting provides greater flexibility but can lead to higher costs in the long term.answer: b) or the second option.

$527.7.if the following was the question  $527.7 is the answer.students who are trying to raise funds have an agreement with a local pizza chain. the chain has agreed to sell them pizzas at a discount, which the students can then resell to families in the local community for a profit. it is expected that of the 500 families in the community, at most 70% will buy pizza. based on a survey of their personal preferences, the students believe that they should order no more than 120 cheese pizzas, no more than 150 pepperoni pizzas, and no more than 100 vegetarian pizzas. they also want to make sure that at least 20% of the total pizzas are cheese and at least 50% of the pizzas are pepperoni. they make a profit of $1.45, $1.75, and $1.98, respectively, for each cheese, pepperoni, and vegetarian pizza they resell. how many pizzas of each type should they buy?