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Vikki [24]
3 years ago
14

A natural monopoly is one that: monopolizes a natural resource such as a mineral spring. has increasing returns to scale over th

e entire relevant range of output. typically has low fixed costs, making it easy and "natural" for it to shut out competitors. is based on control of something occurring in nature (such as diamonds).
Business
1 answer:
AleksandrR [38]3 years ago
8 0

Answer:

has increasing returns to scale over the entire relevant range of output.

Explanation:

A monopoly is when there is one firm operating in an industry. A monopoly firm is a price setter and usually has high barriers to entry of firms into the industry. A monopoly earn economic profit in the long run.

A natural monopoly is when a firm is a monopoly because it has increasing returns to scale over the entire relevant range of output or because of high start up costs.

I hope my answer helps you

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Generally, any business can choose its business partners. But, under certain circumstances, there are limits on this freedom for a firm with a big market power.

There is an attempting to define those limited situations when this kinds of firm may violate antitrust law:

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- They can also refuse to deal with customers or suppliers, what cause the effect of preventing them from dealing with a rival: "If you deal with my competitor, I refuse to deal with you."

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