Which of the following statements about the firm depicted in the diagram is true? O A. The fact that this firm is a natural monopoly is shown by the continually declining market demand curve as output rises. O B. 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. OC. The fact that this firm is a natural monopoly is shown by the continually declining marginal revenue curve as output rises. O D. 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. Price and cost per unit 395 70 59 20 109 1,740 1,900 2,204 MC Demand ATC Quantity

Which of the following statements about the firm depicted in the diagram is true? O A. The fact that this firm is a natural monopoly is shown by the continually declining market demand curve as output rises. O B. 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. OC. The fact that this firm is a natural monopoly is shown by the continually declining marginal revenue curve as output rises. O D. 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. Price and cost per unit 395 70 59 20 109 1,740 1,900 2,204 MC Demand ATC Quantity

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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