The Average Cost Curve of a Natural Monopoly

question 39

Multiple Choice

The average cost curve of a natural monopoly

• A)is upward-sloping.
• B)is downward-sloping.
• C)is horizontal.
• D)has an inverted U-shape.
• E)is vertical.

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Definitions:

Dewatered Zone

An area from which significant amounts of water have been removed, often related to geological or artificial processes affecting soil and rock permeability.

Aquifer

An aquifer is an underground layer of water-bearing permeable rock, rock fractures, or unconsolidated materials through which groundwater can move.

Sediments

Particles of soil, sand, or small pieces of rock deposited by water, wind, or ice.

Cone of Depression

A cone-shaped lowering of the water table around a pumping well, due to the removal of groundwater faster than it can be replenished.