The monopoly can emerge naturally because:

Question

Quizplus · Accepted Answer

The relationship between average cost and the scale of an operation is a key factor in the emergence of a monopoly. As the scale of operation increases, the average cost of production decreases. This means that larger firms are able to produce at lower costs than smaller firms, making it difficult for new entrants to compete. As a result, a single firm may emerge as the dominant player in the industry, leading to a monopoly.

The Monopoly Can Emerge Naturally Because