Respuesta :
The given statement is true. A trait of natural monopolies or monopolistic competition is excess capacity.
Why do monopolies have excess capacity?
According to Irving Fisher, a monopoly is a market where there is "no competition," which results in a situation where one person or business is the only supplier of a specific good or service. When one firm and its product control an entire sector of the economy, there is little to no competition and customers are forced to buy the particular products or service from the one company.
A trait of natural monopolies or monopolistic competition is excess capacity. It might occur because businesses have to make lumpy or indivisible investments to boost capacity as demand rises. A market is a setting where two or more parties exchange products, services, and information. A market is ideally a place where two or more people can do business. Seller and buyer are the two parties involved in a transaction.
The entire number of buyers and sellers in the area or region under consideration is referred to as the market. Earth, as well as several nations, regions, states, and cities, may be the subject. The worth, expense, and cost of the goods traded depend on the forces of supply and demand in the market.
Hence, The given statement is true.
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