In a(n)_____,throughout the range of market demand,marginal cost is less than average cost and pulls average cost downward.

Question

Quizplus · Accepted Answer

In a natural monopoly, due to high fixed costs and economies of scale, marginal cost is less than average cost across a wide range of output. This situation leads to a downward pull on the average cost as output increases, which is characteristic of natural monopolies.

In A(n)_____,throughout the Range of Market Demand,marginal Cost Is Less