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:

Bond Interest Paid

The amount paid by the issuer of a bond as interest to the bondholders, usually expressed as a fixed percentage of the principal.

Discount

A reduction from the usual cost of something or the act of lowering the price.

Premium

The amount by which the price of something, especially a financial instrument, exceeds its principal or face value.

Unamortized Premium

The portion of the bond premium that has not yet been expensed to interest expense over the bond's life.