Suppose That All Pizza Companies Have the Same Costs and the Minimum

Multiple Choice

Suppose that all pizza companies have the same costs and the minimum average total cost is $12 per pizza. The pizza companies have an efficient scale of 100 pies per night. In the small town of Coatsville, at the price of $12 per pizza the quantity demanded is approximately 300 pizzas per night. This market, therefore, can best be characterized as

A) perfectly competitive.
B) a natural monopoly.
C) a natural duopoly.
D) a natural oligopoly.