When a firm's average-total-cost curve continually declines,what is the firm considered
A)a government-created monopoly
B)a natural monopoly
C)a revenue monopoly
D)a subsidized monopoly

Question

Quizplus · Accepted Answer

When a firm's average-total-cost curve continually declines, it is considered a natural monopoly. This occurs when there are high fixed costs of production and the firm can produce at a lower cost than any potential competitors entering the market. As a result, the firm can potentially dominate the market due to its cost advantage.

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