A natural monopoly-such as a local electricity provider

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Reference no: EM13695079

A natural monopoly, such as a local electricity provider, is the result of:

i. a firm owning or controlling a key input used in the production process

ii. long-run average total costs declining continuously as output increases

iii. long-run total costs declining continuously as output increases

iv. Economies of scale existing over a wide range of output

Reference no: EM13695079

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