Asked by Justene Hirsig on May 17, 2024
Verified
A natural monopoly
A) has an average cost curve that reaches minimum possible average cost at a low level of output.
B) has a marginal cost curve that is steeply upward sloping.
C) is usually subject to antitrust suits.
D) is usually allowed to choose its price so as to maximize profits in the United States.
E) occurs when a single firm can supply the entire market demand for a product at a lower average cost than would be possible if two or more firms supplied the market.
Natural Monopoly
A market condition where a single firm can provide goods or services to an entire market at a lower cost than if there were multiple firms in the industry.
Antitrust Suits
Legal cases intended to prevent or penalize monopolies and ensure competition in the marketplace.
Average Cost
The total cost of production divided by the number of units produced.
- Comprehend the concept and implications of a natural monopoly.
Verified Answer
Learning Objectives
- Comprehend the concept and implications of a natural monopoly.
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