A natural monopoly
A. arises as a result of legal barriers to entry.
B. occurs when one firm controls a natural resource.
C. arises when one firm can meet the entire market demand at a lower average total cost than two or more firms.
D. Both answers A and B are correct.
E. Both answers A and C are correct.
Ans: C. arises when one firm can meet the entire market demand at a lower average total cost than two or more firms.
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