Thomson has a legally protected exclusive right to produce this textbook

Thomson owns a key resource in the production of textbooks

Thomson is a natural monopoly

Thomson is a very large company

A

B

C

D

D

A

B

C

underproduction of the good.

the monopoly’s profits.

the monopoly’s losses

overproduction of the good.

higher prices and lower output

higher prices and higher output

lower prices and lower output

lower prices and higher output