If a Firm Is a Natural Monopoly, Its

question 204

Multiple Choice

If a firm is a natural monopoly, its

• A)long-run average cost declines over the full range of market demand
• B)long-run average cost increases over the full range of market demand
• C)fixed cost declines over the full range of market demand
• D)fixed cost increases over the full range of market demand
• E)long-run average cost declines and marginal cost rises over the full range of market demand

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Definitions:

Traveler's

Pertaining to, designed for, or used by people who are traveling, as in "traveler's checks" or "traveler's insurance".

Counter Check

a temporary bank check that allows the holder to draw funds from an individual account.

Withdraw Money

involves removing cash from a bank account, either through an ATM, bank teller, or other banking procedures.

Pegboard

A board, typically perforated with a grid of holes, used for organizing tools or for games, by fitting pegs or hooks into the holes.