# A case when internal economies of scale bring about a continuously falling average cost curve that makes having more than one firm in an industry inefficient is illustrative of ? with Answer - Economics Mcqs | TestPrep

> Solved MCQ: A case when internal economies of scale bring about a continuously falling average cost curve that makes having more than one firm in an industry inefficient is illustrative of ? Correct Answer: A. a natural monopoly. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

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# A case when internal economies of scale bring about a continuously falling average cost curve that makes having more than one firm in an industry inefficient is illustrative of ?

Direct Answer & Quick Reference

The correct option is **A. a natural monopoly**.

A. a natural monopoly **(Correct Answer)**

B. an LDC’s limit of one firm to an industry

C. an individual firm facing a horizontal (perfectly elastic) demand curve in LDCs

D. The existence of oligopoly

✨ Explain with AI

Verified Key: A. a natural monopoly
Solved by 3,660+ students

Verified against official examination board answer keys and standard curriculum textbooks.

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*Source: https://test-prep.blog/mcq/a-case-when-internal-economies-of-scale-bring-about-a-continuously-falling-avera-b85f8779-5db4-4c5c-9bac-9374d5305928*
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