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If there is a natural monopoly
one firm owns all the natural resources in the production of a good, such as owning the diamond mines needed to produce diamonds.
there are close substitutes for the good but by nature they are the types of substitutes that do not compete with the monopoly.
it is cheaper for one firm to produce the entire industry's output rather than have two or more firms produce the same output.
one firm has the patent to the good.
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Am I right in saying an isoquant for an output produced using 2 inputs that can be perfectly substituted for each other can be represented by a straight line
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