A natural monopoly is likely to experience diseconomies of scale.

Name: A natural monopoly is likely to experience diseconomies of scale.
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A natural monopoly typically experiences economies of scale, meaning that as it produces more, the average cost per unit decreases. This is due to high fixed costs and low marginal costs, which make it more efficient for a single firm to supply the entire market.

A Natural Monopoly Is Likely to Experience Diseconomies of Scale