Ask Question
4 June, 08:26

For a natural monopoly to exist

A. a firm's long run average cost curve must exhibit economies of scale throughout the relevant range of market demand.

B. a firm's long run average cost curve must exhibit diseconomies of scale beyond the economically efficient output level.

C. a firm must continually buy up its rivals.

D. a firm must have a governmentminus-imposed barrier.

+5
Answers (1)
  1. 4 June, 09:47
    0
    The correct answer is A

    Explanation:

    Natural monopoly is the kind of monopoly which exists because of the high start up costs as well as the powerful economies of scale for conducting or performing a business in a particular industry.

    And for this type of monopoly to exist, a firm or business need that the long run average cost curve will exhibit the economies of scale by the relevant range of the market demand.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “For a natural monopoly to exist A. a firm's long run average cost curve must exhibit economies of scale throughout the relevant range of ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers