Multiple Choice
Which of the following is a characteristic of a firm that is a natural monopoly?
A) The firm's average costs decline over all levels of output.
B) The firm's elasticity of supply is very low.
C) The firm does not incur any sunk costs.
D) The firm faces a horizontal demand curve.
E) The firm makes zero economic profit.
Correct Answer:
Verified
Correct Answer:
Verified
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