question archive In Marion County, NJ, all homes, businesses, and other organizations purchase their water from on seller MPSCo
In Marion County, NJ, all homes, businesses, and other organizations purchase their water from on seller MPSCo
Subject:MarketingPrice:2.88 Bought3
In Marion County, NJ, all homes, businesses, and other organizations purchase their water from on seller MPSCo. Economists refer to public utility companies like MPSCo as natural monopolies because their:
a) marginal cost curves lie everywhere beneath their average fixed cost curves.
b) marginal cost curves lie everywhere beneath their demand curves.
c) average total cost curves lie everywhere above their demand curves.
d) none of the above answers is correct.
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- The correct option is d). None of the above answers is correct.
Here, it is stated that MPSCo. is a natural monopoly; therefore, in this market structure, the marginal cost curve lies below the average total cost curve and the average total curve is always falling.
