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.

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Definitions:

Value

The significance or worth of something, often numerical, but can also be qualitative in context such as moral values.

Normal Random Variable

A variable that is distributed according to the normal distribution, characterized by its mean and standard deviation.

Mean

The average of a set of numbers, calculated by dividing the sum of all the numbers by the quantity of numbers.

Standard Deviation

A statistical measure that quantifies the variability or dispersion of a dataset relative to its mean; used to gauge the amount of variation or spread in a set of data points.