If a Firm's Average Total Cost Is Everywhere Decreasing, Then

question 40

True/False

If a firm's average total cost is everywhere decreasing, then this is likely to lead to a natural monopoly.

---

Definitions:

Generalization

The process of applying the principles learned from specific instances to broader and different situations.

Discrimination

In psychology, the ability to distinguish between different stimuli and respond appropriately according to their differences.

Modeling Effect

Learning a new behavior from a model through the acquisition of new responses.

Disinhibitory Effect

Describes the phenomenon where observing a model being rewarded for a prohibited or inhibited behavior increases the likelihood of the observer engaging in that behavior.