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Web Slinger is an Internet service provider. In the long run, Web Slinger can provide Internet service for 20,000 homes each month at a total

Web Slinger is an Internet service provider. In the long run, Web Slinger can provide Internet service for 20,000 homes each month at a total cost of $700,000, Internet service for 30,000 homes at a total cost of $750,000, or Internet service for 40,000 homes at a total cost of $800,000. Use the purple points (diamond symbol) on this graph to plot points of the long-run average cost curve at outputs of 20,000, 30,000, and 40,000 homes. Average cost 0 10 20 30 40 50 50 40 30 20 10 0 AVERAGE COST (Dollars per home per month) HOMES SERVED (Thousands) Suppose that Web Slinger provides Internet service for all 40,000 homes that purchase Internet service in the metropolitan area. This situation can best be characterized as: Decreasing returns to scale A natural monopoly

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