Question 16 2 A natural monopoly exists when a monopolist produces a product, the main component of which is a natural wood. economies of scale are so large that only one firm can survive and achieve low average total cost in t long run. a firm is the exclusive owner of a key resource necessary to produce the firm's product. there are many close substitutes for a firm's product O Question 17 2 Productive efficiency occurs when price O is equal to marginal revenue. is equal to marginal cost O is equal to marginal cost and average total cost is equal to average total cost at minimum.
