-We Know That the Firm Shown in the Figure Above

question 134

Multiple Choice

-We know that the firm shown in the figure above is a natural monopoly because as output increases, the

• A) marginal cost is constant.
• B) demand curve slopes downward.
• C) marginal revenue curve lies below its demand curve.
• D) average total cost decreases so that the firm can supply the market at lower cost than two firms.

---

Definitions:

Section Break

A feature in word processing software that allows users to divide documents into sections, each with its own layout and formatting settings.

Level 1 Heading

The highest level of heading in a document, used for the main titles or sections, indicating the primary content divisions.

Level 2 Heading

A secondary header in a document or webpage, used to introduce sections within a topic, often styled smaller than a top-level heading.

Collapse Button

A user interface feature that allows users to hide or show sections of content, often seen in navigation menus or sidebars.