Suppose in an Industry a Firm Realizes Economies of Scale

question 12

Multiple Choice

Suppose in an industry a firm realizes economies of scale over the entire length of its LRAC curve.In this situation,the firm is

• A)a natural monopoly.
• B)a fixed-cost monopoly.
• C)an output-discriminating monopoly.
• D)a perfect-price discriminating monopoly.
• E)a constant total variable cost monopoly.

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