Figure 10-1 -Refer to Figure 10-1.Which of the Following Statements About the Following

question 130

Multiple Choice

Figure 10-1

-Refer to Figure 10-1.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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