Which of the Following Statements Is False Regarding a Natural

question 96

Multiple Choice

Which of the following statements is false regarding a natural monopoly?

• A)The minimum efficient scale is larger than the size of the market.
• B)The average total cost declines over the entire range of output.
• C)One firm can supply the entire market at a lower cost than two firms can.
• D)Fixed costs are very large compared to variable costs.
• E)Diseconomies of scale exist at a very low output level.

---

Definitions:

Climbed

entails ascending or going up something, often requiring physical effort, such as climbing a mountain or stairs.

Laboratory Procedure

A standard method or process followed in a scientific lab for the study, experimentation, or measurement of phenomena.

Strange Situation

A procedure developed by psychologist Mary Ainsworth to observe attachment relationships between a caregiver and child.

Ainsworth

Mary Ainsworth, known for her work in developmental psychology, especially attachment theory.