In Natural Monopoly,AC Continuously Declines Due to Economies in Distribution

question 4

Multiple Choice

In natural monopoly,AC continuously declines due to economies in distribution or in production,which tends to found in industries which face increasing returns to scale.If price were set equal to marginal cost,then:

• A) price would equal average cost.
• B) price would exceed average cost.
• C) price would be below average cost.
• D) price would be at the profit maximizing level for natural monopoly
• E) all of the above

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Definitions:

Reflexes

Involuntary and nearly instantaneous movements in response to a stimulus.

Gross Motor Skills

The abilities required to control the large muscles of the body for walking, jumping, balancing, and other physical activities.

Hippocampus

A region of the brain that is associated with memory formation, learning, and spatial navigation.

Myelination

The biological process of forming a myelin sheath around the axons of neurons, which significantly increases the speed at which electrical impulses travel across the nerve cells.