An industry is said to be a natural monopoly when: a. legal ...

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An industry is said to be a natural monopoly when:
 a. legal barriers limit entry into the market.
  b. diseconomies of scale are present in the market.
  c. the market demand for the product supplied by a firm is inelastic.
  d. long-run average cost continues to decline as the quantity of output increases.

Question 2

I'm tired of eating muffins for breakfast. Today, I'm trying a bagel. These statements most clearly reflect the:
 a. law of increasing returns to scale.
  b. second law of demand.
  c. law of diminishing marginal utility.
  d. law of comparative advantage.

[huda]

Answer to Question 1

d

Answer to Question 2

c