Which of the Following Is True Under Natural Monopoly

question 191

Multiple Choice

Which of the following is true under natural monopoly?

• A) the monopolist will ignore consumers' desires.
• B) the marginal cost curve will lie below the average total cost curve.
• C) the monopolist will set price equal to marginal cost and will earn economic profits.
• D) output is produced under conditions of constant cost.

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Definitions:

Scatterplot

A type of graph used in statistics to display values for typically two variables for a set of data.

Regression Line

A straight line that describes how a response variable y changes as an explanatory variable x changes, in linear regression analysis.

Best-Fitting Line

A line through a scatter plot of data points that best expresses the relationship between those points, often determined by the method of least squares.

Prime Time

The time period during which television audiences are the largest, often considered to be in the evening hours.