1.

Which of the following is true of a natural monopoly?

A. The firm can supply the entire market at a lower cost than could two or more firms.
B. Its average total cost curve slopes upward as it intersects the demand curve.
C. The firm is not protected by any barrier to entry.
D. Economies of scale exist to only a very low level of output.
Answer» B. Its average total cost curve slopes upward as it intersects the demand curve.


Discussion

No Comment Found