Monopoly caused by economies of scales is called: 


Production function, Q = 10L + 5K+10L^{0.5}K^{0.6} is subject to: 


1. d) natural monopoly.
(A natural monopoly has downward sloping average cost curve which
represents economies of scale so monopoly caused by economies of
scale is called natural monopoly.)
2. a) increasing returns to scale
(Q = 10L + 5K+10L^{0.5}K^{0.6}
Let L = tL and K = tK where t > 1
So, Q = 10(tL) + 5(tK) +10(tL)^{0.5}(tK)^{0.6} =
t(10L + 5K) + t^{0.5+0.6}10L^{0.5}K^{0.6} =
t(10L + 5K) + t^{1.1}10L^{0.5}K^{0.6}
So, there are increasing returns to scale as
t^{1.1}10L^{0.5}K^{0.6} >
10L^{0.5}K^{0.6})
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