If a firm in an industry experiences very high fixed costs and constant marginal cost,it is a good candidate for a natural monopoly.

Name: If a firm in an industry experiences very high fixed costs and constant marginal cost,it is a good candidate for a natural monopoly.
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Question

Quizplus · Accepted Answer

Average cost will fall because average fixed costs decline and marginal cost stay constant.Two or more similar firms would have higher cost.

If a Firm in an Industry Experiences Very High Fixed