If Large Fixed Costs Result in ATC Falling as Output

question 52

Multiple Choice

If large fixed costs result in ATC falling as output increases and this occurs over the relevant range of output,this industry is a:

• A)constant-cost industry.
• B)natural monopoly.
• C)network externality.
• D)profit maximizer.

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Definitions:

Outrageous Abuse

An extreme form of misconduct or mistreatment that is shocking and exceeds the bounds of decency.

False Imprisonment

An act of restraining a person against their will in a bounded area without any legal justification.

Justifiably Restrains

Legitimate limitation or control of actions based on legal or moral grounds.

Wrongful Conduct

Actions or behaviors that are illegal or morally incorrect, often resulting in harm or injury to others.