A natural monopoly occurs when the quantity demanded is _______ the minimum quantity it takes to be at the bottom of the long-run average cost curve.
A) greater than
B) less than
C) equal to
D) a or c above

Question

Quizplus · Accepted Answer

A natural monopoly occurs when the quantity demanded is less than the minimum quantity it takes to be at the bottom of the long-run average cost curve, allowing a single firm to supply the entire market at a lower cost than multiple firms.

A Natural Monopoly Occurs When the Quantity Demanded Is _______