Which of the Following Is a Characteristic of a Natural

question 369

Multiple Choice

Which of the following is a characteristic of a natural monopoly?

• A)Average cost exceeds marginal cost over large regions of output.
• B)Increasing the number of firms increases each firm's average total cost.
• C)One firm can supply output at a lower cost than two firms.
• D)All of the above are correct.

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Definitions:

Habitat

The natural environment in which a particular species of plant or animal lives, characterized by both physical and biological features.

Lithosphere

The rigid outer layer of the Earth, composed of the crust and the upper part of the mantle.

Earth's Crust

The outermost layer of the Earth, comprising a thin layer of rocks and minerals that houses the planet's oceans and continents.

Upper Mantle

The region of the Earth's mantle that lies just beneath the crust and extends to deeper mantle layers, involved in tectonic movements.