We call a firm a natural monopolist when its LRAC curve ________ when the LRAC intersects the market demand curve.
A. is horizontal
B. becomes negative
C. is still declining
D. is rising
Answer: C
Economics
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Price ceilings are only effective when they are placed below the market equilibrium price
Indicate whether the statement is true or false
Economics
Which of the following statements concerning equilibrium in the long run is not true?
a. Most firms earn economic profits in the long run. b. The firm can vary its plant size in the long run. c. Economic profits are eliminated as new firms enter the industry in the long run. d. For firms in long-run equilibrium, P = MC = AC.
Economics