Large public water and sewer companies often become monopolies because they benefit from although the company faces high start-up costs, the firm experiences average production costs as it expands and adds more customers. smaller competitors would experience average costs and would be less

The answers are

1) Natural

2) Economies of Scale

3) Falling

4) Per Unit

5) Higher

6) Efficient

Explanation:

The above answers are put in the blanks given in the question as follows:

Large public water and sewer companies often become Natural monopolies because they benefit from ___Economies of Scale. Although the company faces high start-up costs, the firm experiences Falling average Per Unit production costs as it expands and adds more customers. Smaller competitors would experience Higher average costs and would be less ___Efficient.