In a Natural Monopoly, Throughout the Range of Market Demand

question 53

Multiple Choice

In a natural monopoly, throughout the range of market demand

• A)marginal cost is above average total cost and pulls average total cost upward.
• B)average total cost is above marginal cost and pulls marginal cost upward.
• C)marginal cost is below average total cost and pulls average total cost downward.
• D)there are diseconomies of scale.

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Definitions:

Current Flow

The movement of electric charge carriers, like electrons, through a conductor or circuit, typically described from positive to negative points.

Electron

A subatomic particle with a negative electric charge, fundamental to electricity, and a key component of atoms.

Atom

The smallest unit of a chemical element, consisting of a nucleus and electrons, forming the basis of all chemical substances.

Knock

A term often used in automotive to describe the premature combustion of fuel in the cylinder of an engine, leading to inefficient performance.