-Which statement is true?
A)The monopolist usually operates at the minimum point of its ATC.
B)Nearly all monopolies are very large firms.
C)Most natural monopolies produce agricultural products or natural resources.
D)None of these statements are true.

Question

-Which statement is true?
A)The monopolist usually operates at the minimum point of its ATC. 
B)Nearly all monopolies are very large firms. 
C)Most natural monopolies produce agricultural products or natural resources. 
D)None of these statements are true.

Quizplus · Accepted Answer

Monopolists do not necessarily operate at the minimum point of their average total cost (ATC); they aim to maximize profit, which might not coincide with the minimum ATC. Not all monopolies are large firms; some can be relatively small if they control a niche market or a unique resource. Most natural monopolies are in industries with high fixed costs, like utilities, rather than agriculture or natural resources, making statement C incorrect.

-Which Statement Is True