Figure 8.13 -Consider an Unregulated Monopoly in Figure 8.13. Suppose That a That

question 223

Multiple Choice

Figure 8.13
-Consider an unregulated monopoly in Figure 8.13. Suppose that a second firm enters the market. As a result, if a natural monopoly is inevitable in this market

• A) the demand curve facing each firm lies entirely above the long-run average cost curve.
• B) the demand curve facing each firm lies entirely below the long-run average cost curve.
• C) the demand curve facing each firm touches the long-run average cost curve at one point.
• D) none of the above