Posted by cymber on Tuesday, October 2, 2007 at 8:06pm.
Do a little research, then take a shot.
Hint: Draw a picture of a natural monopolist; (Demand and MR curves, and AC and MC curves). The defining characteristic of a natural monopolist is that AC is declining for most (all) of any likely output. If AC is declining, what does that say about the position/shape of the MC curve?. At the point when AC starts to eventually rise, what does that say about the MC curve?
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