Question

12. A natural monopoly:

A. is rarely regulated by the government.
B. will earn positive economic profits by producing where demand equals marginal cost in the long run.
C. is an industry with decreasing returns to scale.
D. has decreasing average total cost over its whole range of production.
E. will earn positive economic profits by producing where demand equals average total cost in the long run.

Answer 1

I think its c