Figure 9.1 -Refer to Figure 9.1.Which of the Following Statements About the Statements

Multiple Choice

Figure 9.1
-Refer to Figure 9.1.Which of the following statements about the firm depicted in the diagram is true?

A) The fact that this firm is a natural monopoly is shown by the continually declining long-run average total cost as output rises.
B) The fact that this firm is a natural monopoly is shown by the continually declining market demand curve as output rises.
C) The fact that this firm is a natural monopoly is shown by the continually declining marginal revenue curve as output rises.
D) The fact that this firm is a natural monopoly is shown by the fact that marginal cost lies below the long-run average total cost where the firm maximises its profits.