A constantly declining long-run average cost curve is a characteristic of what type of industrial structure?
A) monopoly
B) natural monopoly
C) oligopoly
D) perfect competition

Question

Quizplus · Accepted Answer

A natural monopoly occurs when a single firm can supply a product or service to an entire market at a lower cost than what it would be if there were multiple firms in the industry, often due to economies of scale. This results in a constantly declining long-run average cost curve.

A Constantly Declining Long-Run Average Cost Curve Is a Characteristic