A Natural Monopoly's Average Cost Curve

question 383

Multiple Choice

A natural monopoly's average cost curve
i.intersects the demand curve while the average cost curve slopes downward.
ii.reaches its minimum before it intersects the demand curve.
iii.intersects the demand curve below the intersection of the marginal cost curve and the demand curve.

• A) i only.
• B) ii only.
• C) iii only.
• D) i and iii.
• E) i, ii, and iii.

---

Definitions:

Directive Style

A leadership approach characterized by giving explicit instructions, closely supervising followers, and expecting immediate compliance.

Path-Goal Theory

A leadership theory that suggests a leader's behavior is contingent on the satisfaction, motivation, and performance of subordinates.

Directive

An instruction or order given by someone in authority, guiding actions or strategies in various contexts.

Supervisor

A role within organizations responsible for overseeing the performance and activities of employees, usually within a specific department or area.