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A natural monopoly is most likely to occur in which of the following industries? an industry where fixed costs are very large relative to variable costs the software industry because of the importance of network externalities the pharmaceutical industry because the development and approval of new drugs through the Food and Drug Administration can take more than 10 years the diamond mining and marketing industry because one firm can control a key resource

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Ownership of a key natural resource is one of the many reasons a firm can have a natural monopoly. Patents cause government created monopolies not...
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