-Refer to the graph above.The firm illustrated in the graph is a(n)
A) oligopolist.
B) monopolistic competitor.
C) perfect competitor.
D) natural monopolist.
E) structure that is impossible to classify.

Question

-Refer to the graph above.The firm illustrated in the graph is a(n)
A) oligopolist. 
B) monopolistic competitor. 
C) perfect competitor. 
D) natural monopolist. 
E) structure that is impossible to classify.

Quizplus · Accepted Answer

A natural monopolist is characterized by a downward-sloping average cost curve due to economies of scale, which is typically illustrated in such graphs.

-Refer to the Graph Above