The problem posed by a natural monopoly is that it faces a _____ This means that _______?

A. increasing average cost curve, marginal cost lies below average cost

B. increasing average cost curve, marginal cost lies above average cost

C. decreasing average cost curve marginal cost lies above average cost

D. decreasing average cost curve, marginal cost lies below average cost

Found an error? Read our corrections policy and submit a sourced correction below. You can also share a useful explanation in your own words.

Discuss the answer or suggest a sourced correction
Thank you for contributing.
Your comment was submitted and will appear after editorial review.

Your email is used only for moderation and is never displayed. Spam, copied material and fabricated endorsements are rejected.