Which of the Following Statements About Natural Monopolies Is True

question 35

Multiple Choice

Which of the following statements about natural monopolies is true?

• A) Natural monopolies are only found in the markets for natural resources (like crude oil and coal).
• B) For natural monopolies, marginal cost is always below average cost.
• C) For natural monopolies, average cost is always increasing.
• D) Natural monopolies cannot be regulated.

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