1004EconomicsMedium
A case when internal economies of scale bring about a continuously falling average cost curve that makes having more than one firm in an industry inefficient is illustrative of?
AThe existence of oligopoly
Ban individual firm facing a horizontal (perfectly elastic) demand curve in LDCs
Can LDC’s limit of one firm to an industry
Da natural monopoly
Correct answer
D. a natural monopoly
Explanation
The correct answer is a natural monopoly.