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

question 231

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 continually declining long-run average total cost as output rises.
• 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:

Consistency

Consistency refers to the uniformity of actions, values, methods, measures, principles, expectations, and outcomes within a company or product line over time.

Price Increases

Adjustments made by a company to the selling prices of its products or services, typically to respond to inflation, increased production costs, or to improve profit margins.

Highly Differentiated

Describes products or services that are unique and stand out from those of competitors due to distinctive features or attributes.

Necessity

A requirement or urgent need for something essential or indispensable.