Multiple Choice
For a natural monopoly,economies of scale
A) exist along the long-run average cost curve at least until it crosses the market demand curve.
B) and diseconomies of scale exist along the long-run average cost curve at least until it crosses the market demand curve.
C) lead to a legal barrier to entry.
D) as well as constant returns to scale and diseconomies of scale exist along the long-run average cost curve at least until it crosses the market demand curve.
E) are totally absent.
Correct Answer:

Verified
Correct Answer:
Verified
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