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  • Sources of Monopoly Power

Natural Monopoly

A natural monopoly describes a production process where a single firm can supply the entire market at a lower average cost than two or more firms could. This situation arises when the average cost curve is sufficiently downward-sloping, even in the long run, which makes it impossible for competition to be sustained.

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The Economy 2.0 Microeconomics @ CORE Econ

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