Which of the Following Is NOT a Characteristic of Natural

question 21

Multiple Choice

Which of the following is NOT a characteristic of natural monopoly?

• A)Two or more firms experiencing economies of scale can produce the industry output at lower total cost than if a single firm produces the industry output.
• B)One firm can produce the industry output at a lower total cost than two or more firms.
• C)One firm is the technically efficient way to organize production.
• D)Production of the industry output is characterized by cost subadditivity.

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