Which of the Following Is True Under Natural Monopoly

question 36

Multiple Choice

Which of the following is true under natural monopoly?

• A) The marginal cost curve will be above the average cost curve.
• B) The monopolist will set price equal to marginal cost and will earn economic profits.
• C) Economies of scale exist.
• D) Output is produced under conditions of constant cost.

---

Definitions:

Armpit

The area beneath the junction of the arm and the body, known for its concentration of sweat glands.

Clonal Selection Theory

A theory in immunology that explains how the immune system responds to specific antigens by activating the clone of cells that can recognize and attack the invader.

Antigen

Foreign substance, usually a protein or a polysaccharide, that stimulates the immune system to react, such as to produce antibodies.