When a firm's average total cost curve continually declines, the firm is a
A)government-created monopoly.
B)natural monopoly.
C)revenue monopoly.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

A continually declining average total cost curve indicates that the firm is able to produce at a lower cost as it increases its output, which is a characteristic of a natural monopoly. Government-created and revenue monopolies may not necessarily experience a continually declining average total cost curve.

When a Firm's Average Total Cost Curve Continually Declines, the Firm