Which of the Following Is TRUE of a Natural Monopoly

question 161

Multiple Choice

Which of the following is TRUE of a natural monopoly?

• A) Its long-run average cost curve slopes upward as it intersects the demand curve.
• B) Economies of scale exist to only a very low level of output.
• C) Economies of scale allow one firm to supply the entire market at the lowest possible cost.
• D) The firm is not protected by any barrier to entry.

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