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-The Firm Shown in the Figure Above Is

Question 38

Multiple Choice

-The firm shown in the figure above is A) not a natural monopoly because it experiences diseconomies of scale where its LRAC curve intersects the demand curve. B) a natural monopoly because it experiences economies of scale where its LRAC curve intersects the demand curve. C) a natural monopoly because its marginal cost is constant, so it experiences constant returns to scale. D) not a natural monopoly because its LRAC curve is above its MC curve.
-The firm shown in the figure above is


A) not a natural monopoly because it experiences diseconomies of scale where its LRAC curve intersects the demand curve.
B) a natural monopoly because it experiences economies of scale where its LRAC curve intersects the demand curve.
C) a natural monopoly because its marginal cost is constant, so it experiences constant returns to scale.
D) not a natural monopoly because its LRAC curve is above its MC curve.

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