Which cost curve typically decreases over an extensive output range in a natural monopoly?

Show Answers

Marginal cost in the long runMarginal cost in the short runAverage cost in the long runMarginal cost over the long run

Explanation

In a natural monopoly, the long-run average cost curve continuously declines across a wide span of output, reflecting economies of scale. This characteristic distinguishes it from marginal cost curves, which do not consistently decrease over such ranges.