The Long-Run Average Total Cost Curve of a Natural Monopolist

question 68

Multiple Choice

The long-run average total cost curve of a natural monopolist

• A)Is downward-sloping in the relevant range of production.
• B)Is U-shaped.
• C)Reflects diseconomies of scale.
• D)Is below the long-run marginal cost curve in the relevant range of production.

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Definitions:

Remaining Predictable

The quality or state of behaving or occurring in a way that is expected and consistent over time.

Secret Wishes

Concealed hopes or desires that an individual privately cherishes but may not openly express.

Individual Members

Persons who are part of a group or organization, each contributing uniquely to its function and purpose.

Mistaken Thinking

Erroneous or false reasoning and beliefs about situations or events.