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A firm that is a natural monopoly a. is not likely to be concerned about new entrants eroding its monopoly power. b. is taking advantage

A firm that is a natural monopoly

a.

is not likely to be concerned about new entrants eroding its monopoly power.

b.

is taking advantage of economies of scale.

c.

would experience a higher average total cost if more firms entered the market.

d.

All of the above are correct.

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