We Call a Firm a Natural Monopolist When Its LRAC

question 57

Multiple Choice

We call a firm a natural monopolist when its LRAC curve ________ when the LRAC intersects the market demand curve.

• A) is horizontal
• B) becomes negative
• C) is rising
• D) is still declining

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Definitions:

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The measure of output (such as crops or livestock) produced per unit of input (like labor or land) in agricultural activities.

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