Suppose the technology of an industry is such that the typical firm's minimum efficient scale is 8000 units per month at an average long-run cost of $5 per unit.If the total quantity demanded at a price of $5 per unit is 8500 units per month,the likely result would be

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The industry has a natural monopoly because the minimum efficient scale for a typical firm is 8000 units per month, meaning that it would be difficult for smaller firms to compete. The total quantity demanded at a price of $5 per unit is only 8500 units per month, which is not enough demand to support multiple firms operating at their minimum efficient scale. Therefore, there is likely to be only one firm operating as a natural monopoly in this industry.

Suppose the Technology of an Industry Is Such That the Typical