Refer to Figure 15-1. Which of the following statements about the firm depicted in the diagram is true?
A) The fact that this firm is a natural monopoly is shown by the long-run average total cost curve still falling when it crosses the demand curve.
B) The fact that this firm is a natural monopoly is shown by the continually declining market demand curve as output rises.
C) The fact that this firm is a natural monopoly is shown by the fact that marginal cost lies below the long-run average total cost where the firm maximizes its profits.
D) The fact that this firm is a natural monopoly is shown by the continually declining marginal revenue curve as output rises.
A
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The price elasticity of demand is 5.0 if a 10 percent increase in the price results in a ________ decrease in the quantity demanded
A) 2 percent B) 5 percent C) 10 percent D) 50 percent
The marginal revenue product of an input is the marginal physical product times the price per unit of output under perfect competition
a. True b. False Indicate whether the statement is true or false