Economics · Market Structures
A natural monopoly occurs when:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Average cost keeps on decreasing with an increase in output over the relevant range of output.✓
- 2Average cost first decreases and then rises with an increase in output over the relevant range.
- 3Average cost remains constant with an increase in output over the relevant range of output.
- 4Average cost keeps on rising with an increase in output over the relevant range of output.
Correct answer
Average cost keeps on decreasing with an increase in output over the relevant range of output.
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