Which of the Following Is True Under Natural Monopoly

question 9

Multiple Choice

Which of the following is true under natural monopoly?

• A) The marginal cost curve will be equal to 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.

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Definitions:

Intelligence

The ability to learn, understand, and make judgments or have opinions that are based on reason.

Tacit Knowledge

Sternberg’s term for information that is not formally taught but is necessary to get ahead.

Critical

Pertaining to the analysis, assessment, or evaluation of the merit, fault, or significance of something.

Componential

Relating to the components or elements of something; in psychology, it often refers to Sternberg's componential analysis of intelligence, one aspect of his triarchic theory.