If a restaurant were a natural monopoly, dividing the restaurant equally into two separate restaurants would

Name: If a restaurant were a natural monopoly, dividing the restaurant equally into two separate restaurants would
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Dividing the restaurant equally into two separate restaurants would increase average total cost as the fixed cost would now have to be divided between two separate entities. This would result in an increase in the cost per unit of output, thus raising the average total cost.

If a Restaurant Were a Natural Monopoly, Dividing the Restaurant