A natural monopoly occurs when: Group of answer choices long-run average costs decline continuously through the range of demand. long-run average costs rise continuously as output is increased. economies of scale are obtained at relatively low levels of output. a firm owns or controls some resource essential to production.

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Business

Nyla Berger

2 February, 05:11

A natural monopoly occurs when: Group of answer choices long-run average costs decline continuously through the range of demand. long-run average costs rise continuously as output is increased. economies of scale are obtained at relatively low levels of output. a firm owns or controls some resource essential to production.

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Answers (1)

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Sadie Graves · Answer 1

The correct answer is long-run average costs decline continuously through the range of demand.

Explanation:

A natural monopoly is a market in which the production of an industry can only produce efficiently with a single company. It occurs when technology shows economies of scale in a production range that is as large as all demand.

Some important examples of natural monopolies are local basic telephony, electricity, gas and water, as well as long-distance rail links, highways and electric transmission. It becomes clear that many of the most important natural monopolies are "network industries."