In a Natural Monopoly, Throughout the Range of Market Demand

question 53

Multiple Choice

In a natural monopoly, throughout the range of market demand

• A)marginal cost is above average total cost and pulls average total cost upward.
• B)average total cost is above marginal cost and pulls marginal cost upward.
• C)marginal cost is below average total cost and pulls average total cost downward.
• D)there are diseconomies of scale.

---

Definitions:

Cannon-Bard Theory

A theory of emotion that argues that physiological arousal and emotional experience occur simultaneously, yet independently.

Physiological Symptoms

Observable body responses to various stimuli, indicating a reaction, such as increased heart rate, sweating, or a rash, in relation to emotions, disease processes, or environmental factors.

Physical Arousal

A cardiovascular, electrodermal, and hormonal reaction, preparing an individual for a vigorous physical activity.

Schachter and Singer

Psychologists who proposed the two-factor theory of emotion, which suggests that emotion is based on physiological arousal and cognitive labeling.