A natural monopoly occurs when
A)long-run average costs decline continuously through the range of demand.
B)a firm owns or controls some resource essential to production.
C)long-run average costs rise continuously as output is increased.
D)economies of scale are obtained at relatively low levels of output.

Question

Quizplus · Accepted Answer

A natural monopoly occurs when long-run average costs decline continuously through the range of demand, meaning that a single firm can supply the entire market at a lower cost than multiple firms.

A Natural Monopoly Occurs When