A natural monopolist generally has _____ costs and substantial _____ of scale.
A) low fixed; diseconomies
B) high fixed; economies
C) low variable; diseconomies
D) high variable; economies

Question

Quizplus · Accepted Answer

A natural monopolist typically has high fixed costs and substantial economies of scale, meaning that as production increases, the average cost per unit decreases. This makes it difficult for new competitors to enter the market, as they would need to invest heavily to achieve a competitive cost structure.

A Natural Monopolist Generally Has _____ Costs and Substantial _____

A Natural Monopolist Generally Has _ Costs and Substantial _