If a restaurant was a natural monopoly,its
A) marginal cost curve would still be declining when it crossed the demand curve.
B) average total cost curve would still be declining when it crossed the demand curve.
C) marginal revenue curve wold be the same as its demand curve.
D) marginal revenue curve would be horizontal.

Question

Quizplus · Accepted Answer

A natural monopoly occurs when a single firm can supply the entire market at a lower cost than any combination of multiple firms, typically due to economies of scale. This means the average total cost curve is still declining when it crosses the demand curve.

If a Restaurant Was a Natural Monopoly,its