Natural monopoly (1 Viewer)

[aricho]

a quick question just checking up on what i think is right
in a natural monopoly,
avg fixed costs continually fall
marginal cost=variable cost, ie constant amout to supply another person, e.g $10 to supply another person
therefore, is marginal revenue constantly rising due to the falling afc and constant mc?

thanks for help

 

[aricho]

correction, MC approaches VC as AFC keeps getting smaller, so yeah MR then rises as costs continually fall ?

 

[wrong_turn]

LOL i forgot all of this first year stuff.

but i know that for a monopoly, it produces the quantity where MR=MC and priced at where where Q = demand.

and the other stuff im pretty sure is correct for a natural monopoly where you have to remember that it is cheaper for the market to have only one producer than two.