The Situation in Which the Long-Run Average Cost Curve Exhibits

question 98

Essay

The situation in which the long-run average cost curve exhibits economies of scale over the entire range of output is called a "natural monopoly." Explain why,in the case of a natural monopoly,it would be cost efficient to have a single firm serve the entire market.

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Definitions:

Married Women

Women who are legally wed under the laws or customs recognized by their jurisdiction, affecting various legal rights and obligations.

Bankrupts

Individuals or entities that have been legally declared incapable of paying their debts and have their assets administered for the benefit of their creditors.

Domestic Relationship

A social or personal relationship between individuals who live together and share a domestic life but may not be married.

Marital Obligation

The duties and responsibilities that are legally binding between married partners, including fidelity, support, and respect.