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.

---

Definitions:

Inspect

The act of examining or reviewing something carefully to determine its condition or to ascertain compliance with specific requirements or standards.

Merchantable

A legal term meaning something is of sufficient quality to be sold, meeting reasonable expectations for its kind.

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to standardize and simplify the laws related to commerce and sales.

Deduction

Deduction in a financial context refers to the removal of a certain amount from gross income or expenses, which reduces the taxable income or net profit.