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:

Second-Hand Smoke

The smoke inhaled involuntarily from tobacco being smoked by others, posing health risks to non-smokers.

Unemployment

The situation where individuals who are able and willing to work are not able to find employment.

Long-Term Effects

The impacts or results of a policy, action, or event that manifest or become apparent over a lengthy period.

Pollution

The introduction of contaminants into the natural environment that cause adverse change and harm to ecosystems and human health.