Asked by
cartoon world
on Dec 12, 2024
Verified
Which of the following is true under natural monopoly?
A) the monopolist will ignore consumers' desires.
B) the marginal cost curve will lie below the average total cost curve.
C) the monopolist will set price equal to marginal cost and will earn economic profits.
D) output is produced under conditions of constant cost.
Natural Monopoly
A market condition where a single firm can supply a good or service to an entire market at a lower cost than two or more firms.
Average Total Cost
The total cost of production (fixed plus variable costs) divided by the total quantity of output.
- Understand the concept and implications of natural monopoly.
Verified Answer
IF
Learning Objectives
- Understand the concept and implications of natural monopoly.