Question

A natural monopoly can occur when the average cost of making a good _____ a lot as output increases.

Answer 1

Answer:

A natural monopoly can occur when the average cost of making a good decreases a lot as output increases

Explanation:

A natural monopoly can occur when the average cost of making a good decreases a lot as output increases. An example of this is the electricity. It requires cables, towers, transformers and other electrical equipments, etc. So, in this case is not viable to have multiple providers.