What is the name of the monopolist having a declining long-run average cost throughout the market?
A) Monopolistic competition.
B) Monopoly by legal barrier.
C) Natural monopoly.
D) Contrived monopoly.

Question

Quizplus · Accepted Answer

A natural monopoly occurs when it is more efficient for one firm to produce the entire output of the market due to economies of scale. As the firm produces more and more output, its average cost of production decreases, leading to a declining long-run average cost curve.

What Is the Name of the Monopolist Having a Declining