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A Natural Monopoly Exists When

Question 2

Multiple Choice

A natural monopoly exists when


A) one firm can supply an entire market at a lower average total cost than can two or more firms.
B) a firm can engage in price discrimination.
C) a monopoly firm faces a horizontal demand curve.
D) diseconomies of scale exist in an industry.
E) the producers in an industry have formed a cartel.

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