When a Natural Monopoly Exists in a Given Industry, the Per-Unit

question 30

Multiple Choice

When a natural monopoly exists in a given industry, the per-unit costs of production will be

• A) lowest when there are a large number of producers in the industry.
• B) lower for the smaller firms than for larger firms.
• C) minimized at the output that maximizes the industry's profitability.
• D) lowest when a single firm generates the entire output of the industry.