In a Natural Monopoly, Throughout the Range of Market Demand

question 6

Multiple Choice

In a natural monopoly, throughout the range of market demand,

• A)marginal cost exceeds average cost and therefore pulls average cost upward
• B)average cost exceeds marginal cost and therefore pulls marginal cost upward
• C)marginal cost is below average cost and therefore pulls average cost downward
• D)average cost is equal to marginal cost
• E)there are diseconomies of scale

---

Definitions:

Madison Square Garden Corp., Ill. v. Carnera

A legal case that dealt with specific issues related to contracts or legal obligations; further context would be needed for a precise definition.

Negative Covenant

A promise in a contract that prohibits a party from engaging in certain activities.

Exclusive Services

refers to specialized services provided or contracted to serve only one party or a limited market, often under specific terms that exclude competitors.

Injunctive Relief

A court-ordered act or prohibition against a specific action or behavior to prevent irreparable harm or to maintain the status quo during a lawsuit.