All of the following,except one,are true statements about a natural monopoly.Which one is the exception?
A)It is able to produce at a lower cost than competing firms could.
B)It has economies of scale and a declining LRAC over the relevant range of demand.
C)The demand for its product is perfectly elastic.
D)The demand is perfectly inelastic.

Question

Quizplus · Accepted Answer

Natural monopolies have economies of scale, which means they can produce at a lower average cost than potential competitors, leading to a declining long-run average cost curve. The demand for their product is usually inelastic, meaning that changes in price have little effect on the quantity demanded. However, the demand for their product is not perfectly elastic, which implies that consumers have many substitutes available and the monopolist has no market power to control the price.

All of the Following,except One,are True Statements About a Natural