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A firm that is a natural monopoly: q , is infrequently regulated because having one firm serve the market is economically sound. produces the efficient
A firm that is a natural monopoly: is infrequently regulated because having one firm serve the market is economically sound. produces the efficient quantity of output when it is not regulated. has very small fixed costs and very large marginal costs. cannot make an economic profit if it is not regulated because it must serve a very large customer base. can supply the entire market at a lower average total cost than two or more firms.
A firm that is a natural monopoly: is infrequently regulated because having one firm serve the market is economically sound.
produces the efficient quantity of output when it is not regulated.
has very small fixed costs and very large marginal costs.
cannot make an economic profit if it is not regulated because it must serve a very large customer base.
can supply the entire market at a lower average total cost than two or more firms.
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