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