A natural monopoly occurs when:Group of answer choicesthe monopolist product is an organic, pesticide-free product.firms are characterised by rising marginal-cost curves. average total cost of production increases as more output is produced. average total cost of production decreases as more output is produced  ,

A natural monopoly occurs whenGroup of answer choicesthe product is sold in its natural state, such as water or diamonds.there are economies of scale over the relevant range of output.the firm is characterized by a rising marginal cost curve.production requires the use of free natural resources, such as water or air.

​A natural monopoly exists when one large firm can produce a product at a lower per unit cost than can smaller firms.Group of answer choicesTrueFalse

Which situation would be labelled a “natural monopoly”?Group of answer choicesA firm has large economies of scale, and is thus able to sell the good for a lower price than would if there were many firms.A firm applies for a patent to exclude others from entering.A firm owns exclusive rights to a natural resource.

Fill in the Blank QuestionFill in the blank question.A natural monopoly may occur when only a single firm can achieve the of scale necessary to compete in an industry.

Monopolistic competition is characterized by firmsMultiple Choiceproducing differentiated products.making economic profits in the long run.producing at optimal productive efficiency.producing where price equals marginal cost.