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 Can a firm operating in the upward-sloping portion of its average cost curve be a natural monopoly? Explain.

Category : Micro Economics | Answer: 1 2 Months Ago

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 No. In order for a firm to be a natural monopoly, the average cost curve must be strictly declining.  Therefore, it must be the case that the average cost curve is cut by the demand curve in its downwardsloping region

2 Months Ago
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