If the economies of scale are large enough, average cost for anatural monopoly can be:

Question

Quizplus · Accepted Answer

Natural monopolies are characterized by large economies of scale, which means that as the quantity produced increases, the average cost of production decreases. This allows natural monopolies to produce and sell their products at a lower cost than competitors, leading to lower prices for consumers. Therefore, the average cost for a natural monopoly can be lower than the average cost under competition.

If the Economies of Scale Are Large Enough, Average Cost