For a long while, electricity producers were thought to be a classic example of a natural monopoly. People held this view because Question 3 options: the average cost of producing units of electricity by one producer in a specific region was lower than if the same quantity were produced by two or more producers in the same region. the average cost of producing units of electricity by one producer in a specific region was higher than if the same quantity were produced by two or more produced in the same region. the marginal cost of producing units of electricity by one producer in a specific region was higher than if the same quantity were produced by two or more producers in the same region. electricity producers have sharply increasing costs as production rises.