An industry in which one firm can achieve economies of scale over the entire range of market supply is a

Question

Quizplus · Accepted Answer

A natural monopoly occurs when one firm can produce the entire output of the market at a lower average total cost than any other combination of firms. This is typically achieved through economies of scale, where the firm can spread their fixed costs over a large scale of production. Therefore, a natural monopoly is an industry in which one firm can achieve economies of scale over the entire range of market supply.

An Industry in Which One Firm Can Achieve Economies of Scale