If Large Fixed Costs Result in ATC Falling as Output

question 200

Multiple Choice

If large fixed costs result in ATC falling as output increases, this industry is referred to as a:

• A)constant-cost industry.
• B)natural monopoly.
• C)network externality.
• D)profit-maximizer.

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Definitions:

Neolithic Jericho

An ancient city located in the West Bank, known for being one of the world's earliest urban centers and for its well-preserved Neolithic village.

Fortification Walls

Defensive walls built around towns, cities, or castles to protect them from attacks and invasions.

Merchant Class

A social class comprised of individuals engaged in commercial trade, historically significant in the development of market economies and urban societies.

Neolithic Period

The final stage of cultural evolution or technological development among prehistoric humans, characterized by the development of agriculture and pottery.