In a Natural Monopoly, Average Total Cost

question 22

Multiple Choice

In a natural monopoly, average total cost

• A)equals marginal cost over the entire range of production.
• B)declines over the entire range of production.
• C)is flat over a wide range of output.
• D)increases over the entire range of production.
• E)decreases for a small amount of output and then increases.

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Definitions:

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