When a natural monopoly exists in an industry, which statement will be true?
a. The per-unit costs of production will be lowest when there are numerous producers in the industry.
b. The per-unit costs of production will be lower for the smaller firms than for the larger firms.
c. The per-unit costs of production will be minimized at the output that maximizes the industry's profitability.
d. The per-unit costs of production will be lowest when a single firm generates the entire output of the industry.
d. The per-unit costs of production will be lowest when a single firm generates the entire output of the industry.
When a natural monopoly exists, the per-unit costs of production will be lowest when a single firm generates the entire output of the industry.
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