Which of the Following Is NOT True When There Are

question 87

Multiple Choice

Which of the following is NOT true when there are large economies of scale such that one firm can produce at a lower average cost than can be achieved by multiple firms?

• A) This situation produces a natural monopoly.
• B) Proportional increases in output yield proportionally small increases in total cost.
• C) The long-run average cost curve of the firm will increase at a low level of output.
• D) There will only be one firm in this industry.

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