Economics 9708 · AS & A Level · 7.6

7.6 — practice question

What is one characteristic of a natural monopoly?

  • AThe monopoly produces a product that has no close substitutes.
  • BAverage costs fall over the entire range of output.
  • CThe monopoly controls the supply of its raw materials.
  • DDiseconomies of scale set in at low levels of output.

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