For a natural monopoly, the average total cost curve is .

inverse S-shaped

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upward sloping line

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u-shaped

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decreasing curve

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Solution

The correct option is D decreasing curve
For a natural monopoly, the average total cost is continually falling. Thus the curve is a decreasing curve (downward-sloping).

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Similar questions

Draw the average revenue curve of a firm under (a) monopoly and (b) perfect competition. Explain the difference in these curves, if any.

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