Which of the Following Is a Characteristic of a Firm

question 11

Multiple Choice

Which of the following is a characteristic of a firm that is a natural monopoly?

• A) The firm's average costs decline over all levels of output.
• B) The firm's elasticity of supply is very low.
• C) The firm does not incur any sunk costs.
• D) The firm faces a horizontal demand curve.
• E) The firm makes zero economic profit.

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