Suppose in an industry a firm realizes economies of scale over the entire length of its LRAC curve.In this situation,the firm is

Question

Quizplus · Accepted Answer

A firm that realizes economies of scale over the entire length of its LRAC curve is a natural monopoly. This means that the firm can produce output at a lower cost than any potential competitor, making it the only supplier in the market. This is due to the high fixed costs of entry into the market and the ability of the firm to spread these costs over a large output. Therefore, option A is the correct choice.

Suppose in an Industry a Firm Realizes Economies of Scale