A natural monopoly occurs when
A)there are high fixed costs.
B)continuously decreasing average total costs.
C)continuously increasing marginal costs.
D)A and B

Name: A natural monopoly occurs when A)there are high fixed costs. B)continuously decreasing average total costs. C)continuously increasing marginal costs. D)A and B
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Question

Quizplus · Accepted Answer

A natural monopoly occurs when there are high fixed costs and continuously decreasing average total costs, making it inefficient for multiple firms to operate in the market.

A Natural Monopoly Occurs When