The meaning of monopoly - Why Do monopolies Exist? - Increasing Returns to scale

6 important questions on The meaning of monopoly - Why Do monopolies Exist? - Increasing Returns to scale

What type of barrier to entry  do monopolists use in which ATC falls as output increases can prevent other firms from entering?

Increasing returns to scale

What do we call it when ATC falls as output increases, and monopoly is sustained?

Increasing returns to scale

What happens in an industrtry characterized by increasing returns to scale?

Larger companies are more profitable and end up buying driving out smaller monopoly
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When doe the natural monopolists ATC curve decline ?

Over the output levels at which price is greater that or equal to average total cost

Where doe the natural monopolist wish to produce at the minimum?

the firm would the produce would at least break even in the long run

What are examples of the most visible natural monopolies?

Local utilities- water
natural gas
sometimes electricity

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