For a natural monopoly,marginal cost

Name: For a natural monopoly,marginal cost
Brand: Quizplus
Rating: 4.8 (51 reviews)

Question

Quizplus · Accepted Answer

In a natural monopoly, the marginal cost is always below the average total cost in the relevant range of production. This is because natural monopolies have high fixed costs but low variable costs, which means that as they increase production, their average total cost decreases. However, their marginal cost still reflects the additional cost of producing one more unit, which will always be lower than the average cost.

For a Natural Monopoly,marginal Cost