If the long-run average total cost curve of an industry is declining at the point where it intersects the industry demand curve,

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2 years ago

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If the long-run average total cost curve of an industry is declining at the point where it intersects the industry demand curve,

we can expect: A) an overallocation of resources. B) the industry will be purely competitive. C) the industry will be monopolistically competitive. D) the industry will be a natural monopoly.

Business

1 answer:

anastassius [24] · Answer 1 · 2023-11-21T16:03:35+03:00

The answer is (D). The industry will be a natural monopoly. If the long-run average total cost curve of an industry is declining at the point where it intersects the industry demand curve, we can expect the industry will be a natural monopoly.

<h3>What is natural monopoly?</h3>

This is when all means of production is owned and held by one person where in there is lack of competition.

A natural monopoly is an industry that runs best when one firm produces all the output.

Learn more about natural monopoly here: brainly.com/question/13321166

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