A natural monopoly's preemption of entry by other firms by exploiting its economies of scale is an example of

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A natural monopoly's preemption of entry by other firms by exploiting its economies of scale is an example of first-mover advantage. This is because the firm that becomes the natural monopoly is typically the first to establish a significant presence in the industry, and it can use its economies of scale to produce at lower costs than any potential rivals, making it difficult for them to enter and compete.

A Natural Monopoly's Preemption of Entry by Other Firms by Exploiting