Question

Does increasing return necessarily leads to monopoly ?​

Answer 1

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Yes increasing return necessarily leads to monopoly.

${ \bold { \underline{\large{Explanation: - }}}} \:$

The presence of increasing returns to scale means that large companies can produce more efficiently than small companies. A market that has high natural barriers to entry (usually because of increasing returns to scale) is referred to as a natural monopoly because such a market has a tendency to become a monopoly.