For a monopoly to be a natural monopoly, Economies' of scale must be realized at a scale
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Question:
For a monopoly to be a natural monopoly,
Economies' of scale must be realized at a scale that is close to total demand in the market.
there must be constant returns to scale.
Economies of scale must be realized at a scale that is small relative to the market.
the long-run average cost curve must continue to increase until it hits the market demand curve.
Related Book For
Intermediate Microeconomics and Its Application
ISBN: 978-1133189039
12th edition
Authors: Walter Nicholson, Christopher M. Snyder
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