The Figure Below Shows the Demand Curve and the Long

The figure below shows the demand curve and the long run average cost curve for an electric company.
This market is a natural monopoly because

A) the long run average cost curve is U-shaped
B) when producing large quantities, the long run average cost is greater than demand
C) when producing small quantities, the demand is higher than long run average cost
D) the demand curve intersects the long run average cost curve at a point where the long run average cost curve is downward sloping

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free