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A natural monopoly can occur when the average cost of making a good _____ a lot as output increases.

User Nick Alger
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2 Answers

6 votes

Answer:

decreases

Step-by-step explanation:

User Hau
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5 votes

Answer:

A natural monopoly can occur when the average cost of making a good decreases a lot as output increases

Step-by-step explanation:

A natural monopoly can occur when the average cost of making a good decreases a lot as output increases. An example of this is the electricity. It requires cables, towers, transformers and other electrical equipments, etc. So, in this case is not viable to have multiple providers.

User Ohad Eytan
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