A Natural Monopoly

Multiple Choice

A natural monopoly

A) has an average cost curve that reaches minimum possible average cost at a low level of output.
B) has a marginal cost curve that is steeply upward sloping.
C) is usually subject to antitrust suits.
D) is usually allowed to choose its price so as to maximize profits in the United States.
E) occurs when a single firm can supply the entire market demand for a product at a lower average cost than would be possible if two or more firms supplied the market.