Fixed Costs Are ________ in a Natural Monopoly,so Average Total

question 298

Multiple Choice

Fixed costs are ________ in a natural monopoly,so average total cost ________ as output increases.

• A) large; increases
• B) large; decreases
• C) small; increases
• D) small; decreases
• E) nonexistent; decreases

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Definitions:

Low Wages

Compensation amounts paid to workers that are significantly below the average for their sector or region.

CEOs Paid

Refers to the compensation, including salary, bonuses, and stock options, received by chief executive officers of corporations.

Average Employee

A hypothetical or statistical worker representative of the typical skill level, salary, and experience within a company or industry.

Economic Planning

The process by which government officials allocate resources and organize economic activities with the goal of achieving specific economic outcomes.