In the Case of a Natural Monopoly, as the Number

question 107

Multiple Choice

In the case of a natural monopoly, as the number of firms in the industry increases, the average cost of producing a:

• A) fixed number of units decreases.
• B) fixed number of units stays the same.
• C) variable number of units stays the same.
• D) fixed number of units increases.

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Definitions:

First-Line Management

Managers at the lowest level of an organization who directly manage non-managerial employees.