Consider the following statements: Statement 1: "A natural monopoly exists when economies of scale are so pronounced that all of an industry’s demand should be supplied by one firm. " Statement 2: "Monopoly is characterized by a single seller of a distinct product for which no good substitutes exist. " Statement 3: "Average cost pricing is a form of regulation that is intended to force monopolists to reduce output to the point where the monopolist’s average total cost curve intersects its marginal cost curve. " Which of the following best describes the accuracy of these statementsStatement 1 Statement 2 Statement 3（）①A. Incorrect Correct Incorrect ②B. CorrectIncorrect Correct ③C. CorrectCorrect Incorrect
A. ①
B. ②
C. ③
参考答案：C
解析：
Statement 3 is incorrect because average cost pricing attempts to force the monopolist to produce where the average total cost curve intersects the demand curve and to charge a price equal to ATC.