Asked by
vanessa gudmundson
on Dec 12, 2024
Verified
An industry is said to be a natural monopoly when
A) legal barriers limit entry into the market.
B) diseconomies of scale are present in the market.
C) the market demand for the product supplied by a firm is inelastic.
D) long-run ATC continues to decline as firm size increases.
E) larger firms have higher per-unit costs than their smaller rivals.
Diseconomies of Scale
A situation in which a company or business grows so large that the costs per unit increase.
Long-run ATC
Long-run Average Total Cost refers to the per-unit cost of production in the long term where all inputs are considered variable.
- Gain a clear understanding of what constitutes a natural monopoly.
Verified Answer
SA
Learning Objectives
- Gain a clear understanding of what constitutes a natural monopoly.