If a firm has a downward-sloping long-run average cost curve over the entire range of market demand, it is a
A)local monopoly
B)resource monopoly
C)monopsony
D)output monopoly
E)natural monopoly

Question

Quizplus · Accepted Answer

A downward-sloping long-run average cost curve over the entire range of market demand indicates economies of scale that are only achievable by a single firm in the market, which is a characteristic of a natural monopoly.

If a Firm Has a Downward-Sloping Long-Run Average Cost Curve