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MrsAngelD MrsAngelD
wrote...
Posts: 322
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6 years ago
If a firm in an industry experiences very high fixed costs and constant marginal cost, it is a good candidate for a natural monopoly.
Textbook 
Microeconomics: Theory and Applications with Calculus

Microeconomics: Theory and Applications with Calculus


Edition: 4th
Author:
Read 45 times
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wrote...
6 years ago
True. Average cost will fall because average fixed costs decline and marginal cost stay constant. Two or more similar firms would have higher cost.
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