Which of the Following Statements Is TRUE

question 96

Multiple Choice

Which of the following statements is TRUE?
I. Prices in a competitive market will always be lower than the prices charged by a natural monopolist.
II. A natural monopolist arises because of its ability to reduce average costs with large-scale production methods.
III. A natural monopoly is a firm that can demand more inputs without increasing its costs of production.

• A) I and II only
• B) II only
• C) III only
• D) I, II, and III

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