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When understanding production cost in economics the return generated by the investment (cost) is understood to be marginal in nature and diminishing

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When understanding production cost in economics the return generated by the investment (cost) is understood to be marginal in nature and diminishing. This is explained in the law of diminishing marginal returns. However, the specific way this occurs varies by the nature of the market a business is in. Review the graphs below and select the long run-average cost curve which demonstrates a natural monopoly.

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Graph 1

Graph 2

Graph 4

Graph 3