Refer to the Information Provided in Figure 13

question 87

Multiple Choice

Refer to the information provided in Figure 13.2 below to answer the question that follows. Figure 13.2
-Refer to Figure 13.2. The only firm producing electricity has the long-run average total cost curve shown. The total amount of demand for kilowatts is 100,000 per hour. It makes economic sense for this firm to be the only producer of electricity because this firm

• A) must be realizing economies of scale in producing electricity.
• B) must have a patent on the production process necessary to produce electricity.
• C) must have control over a scarce factor of production.
• D) must have a government franchise to produce electricity.

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Definitions:

Venn Diagram

A diagrammatic representation used to show all possible logical relations between a finite collection of different sets.

Venn Diagram

A diagram that shows all possible logical relations between a finite collection of different sets by using overlapping circles or other shapes.

Premises

Statements or propositions from which conclusions are logically derived in arguments.

Conclusion

Conclusion refers to the end or finish of an event, process, or text, often summarizing the main points or deducing a final decision.