Figure 15-1 -Refer to Figure 15-1.Which of the Following Statements About the Following

question 222

Multiple Choice

Figure 15-1

-Refer to Figure 15-1.Which of the following statements about the firm depicted in the diagram is true?

• A)The fact that this firm is a natural monopoly is shown by the long-run average total cost curve still falling when it crosses the demand curve.
• B)The fact that this firm is a natural monopoly is shown by the continually declining market demand curve as output rises.
• C)The fact that this firm is a natural monopoly is shown by the continually declining marginal revenue curve as output rises.
• D)The fact that this firm is a natural monopoly is shown by the fact that marginal cost lies below the long-run average total cost where the firm maximizes its profits.

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Definitions:

Per-Worker Production Function

The per-worker production function depicts the relationship between the average product output per employee and the inputs used per employee, highlighting the efficiency of labor in production.

Attainable

Referring to a goal or objective that can be reached or achieved, especially through effort or strategy.

Per-Worker Production Function

A graphical representation that shows the relationship between the amount of output produced per worker and the amount of capital available per worker.

Shape

The external form or appearance of an object, defined by its outline or surface configuration.