The Average Total Cost Curve of a Natural Monopoly Is

question 198

Multiple Choice

The average total cost curve of a natural monopoly is always

• A)upward sloping.
• B)horizontal.
• C)downward sloping at all points.
• D)downward sloping where it crosses the market demand curve for the good.

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Definitions:

Niche-Market Approach

A marketing strategy that targets a specific, well-defined segment of the market.

Market Segmentation

A strategy whereby a firm divides the total market into groups of people who have relatively similar product needs.

Market Positioning

The process of establishing the image or identity of a brand or product so that consumers perceive it in a certain way relative to competitors.