When Economies of Scale Exist So That One Firm Can

Multiple Choice

When economies of scale exist so that one firm can meet the entire market demand at a lower average total cost than two or more firms,

A) a natural monopoly develops.
B) economic profit is reduced to zero.
C) there is always the opportunity to price discriminate.
D) the monopoly encounters competition.
E) the monopoly converts all of the consumer surplus into economic profit.