Solved

Which of the Following Is True Under Natural Monopoly

Question 18

Multiple Choice

Which of the following is true under natural monopoly?


A) The marginal cost curve will be above the average cost curve.
B) The monopolist will set price equal to marginal cost and will earn economic profits.
C) Economies of scale will be present.
D) Output is produced under conditions of constant cost.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q13: Figure 11-19 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7348/.jpg" alt="Figure 11-19

Q14: Which of the following is an obstacle

Q15: With regard to environmental programs and regulations,

Q16: Which of the following is an important

Q17: Since its beginning, the cable television industry

Q19: Figure 11-21 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7348/.jpg" alt="Figure 11-21

Q20: The price charged by oligopolists will<br>A) equal

Q21: Figure 11-20 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7348/.jpg" alt="Figure 11-20

Q22: The key element in preserving a monopoly

Q23: A market situation where a small number