Which of the Following Is True Under Natural Monopoly

question 191

Multiple Choice

Which of the following is true under natural monopoly?

• A) the monopolist will ignore consumers' desires.
• B) the marginal cost curve will lie below the average total cost curve.
• C) the monopolist will set price equal to marginal cost and will earn economic profits.
• D) output is produced under conditions of constant cost.

---

Definitions:

Exclusive Remedy

A legal principle that limits the aggrieved party to only one specific form of compensation or resolution in a contract or statutory claim.

Repair Or Replacement

This involves fixing damaged goods or substituting them with new or functioning ones as a part of warranty service or customer satisfaction practices.

Measure Of Recovery

The method or formula used to determine the amount of compensation owed to a party for loss or damage.

Values Of Goods

The worth or monetary equivalent of a product or commodity, influenced by factors such as quality, demand, and availability.