Asked by
Mahdieh Heidari
on Nov 16, 2024
Verified
A natural monopoly has economies of scale for most if not all of its range of output.
Economies of Scale
The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.
Natural Monopoly
A type of monopoly that arises because a single firm can supply a good or service to an entire market at a lower cost than could two or more firms.
- Explain the concept and implications of a natural monopoly.
Verified Answer
BW
Learning Objectives
- Explain the concept and implications of a natural monopoly.