Question

Large public water and sewer companies often become _________ monopolies because they benefit from ________. Although the company faces high start-up costs, the firm experiences ___________ average _________ production costs as it expands and adds more customers. Smaller competitors would experience _________ average costs and would be less _______.

Answer 1

The answers are

1) Natural

2) Economies of Scale

3) Falling

4) Per Unit

5) Higher

6) Efficient

Step-by-step explanation:

The above answers are put in the blanks given in the question as follows:

Large public water and sewer companies often become ____Natural_____ monopolies because they benefit from ___Economies of Scale____. Although the company faces high start-up costs, the firm experiences ____Falling____ average ____Per Unit_____ production costs as it expands and adds more customers. Smaller competitors would experience ____Higher_____ average costs and would be less ___Efficient____.