QUESTION 8 Figure 15-1 Price and cost per unit $95 70 59. MC ATC 35 20 Demand MR

Question

QUESTION 8 Figure 15-1 Price and cost per unit $95 70 59. MC ATC 35 20 Demand MR 580 835 1,740 1,900 2,204 Quantity Refer to Figure 15-1. Which of the following statements about the firm depicted in the diagram is true? The fact that this firm is a natural monopoly is shown by the continually declining marginal revenue curve as output rises. The fact that this firm is a natural monopoly is shown by the continually declining market demand curve as output rises. The fact that this firm is a natural monopoly is shown by the long-run average total cost curve still falling when it crosses the demand curve. O The fact that this firm is a natural monopoly is shown by the fact that marginal cost lies below the long-run average total cost where the firm maximizes its profits

Explanation / Answer

yes the correct option is c. the fact that this is a natural monopoly is shown by the long run average total cost curve still falling when it causes the demand curve

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